Annual Report 2009 - PDF 5 by zhangyun


									Annual Report 2009

                     Annual Report 2009 TAPIOLA GROUP   1
Tapiola Group is a group of insurance and
    financial service companies which is
       owned by its customers.

                    Tapiola provides you
                  with comprehensive
                 services that cover you and
                your business.

                                               Photos of the Voutilainen family on the cover
                                               and inside pages: Susanna Kekkonen
Table of Contents
Tapiola Group .............................................. 2

Events in 2009 ............................................ 6

Review by the President            ........................... 8

Tapiola’s strategy for 2010–2012 ............... 10

Tapiola customers ..................................... 14

Reviews by the Group Directors ................. 21

Financial review......................................... 24

Corporate responsibility ............................. 32

Personnel.................................................. 36

Corporate Governance ...............................38

The Annual Reports of Tapiola Group and Tapiola
companies are available at
>In English>Financial Data.

                            Annual Report 2009 TAPIOLA GROUP       1
Tapiola Group
Tapiola Group offers its customers insurance, banking and investment services.
Tapiola develops its products and services based on customer needs.

All of Tapiola’s insurance and financial companies are based on mutuality. In a
mutual company, anyone taking out an insurance policy from the company is a
company shareholder, i.e., owner-customer. Tapiola’s owner-customers comprise
the policyholders, the guarantee share owners and those insured in Tapiola
Pension under the same policy as the Group.

How can customers have their say?             visory Boards, adoption of the profit and     Product development by Advisory
As owner-customers in Tapiola compa-          loss account and balance sheet, and           Committees
nies, policyholders can exercise their        granting of discharge from liability to the   Customers exert influence also through
right of decision at the General Meetings     members of the governing bodies and           the Advisory Committees, the members
of the companies.                             the managing director.                        of which are elected each year from
    The agenda of the General Meeting             The Supervisory Boards supervise          among the customers. The committees
includes the following: election of the       the company’s operations and appoint          have an important role as an interactive
members of the companies’ Super-              the members of the Board of Directors.        channel between customers and the
                                              The Chairmen and Vice Chairmen of the         Group, supplementing administra-
                                              Supervisory Boards of Tapiola General         tion. They take part in the development
                                              and Tapiola Life form the Co-operation        of services and products, for example.
Tapiola Group companies:
 Tapiola General                              Committee of the Supervisory Boards.             In 2009, the 23 regional advisory
 (Tapiola General Mutual Insurance Company)   The committee assists the Supervisory         committees had a total of 340 members.
 Tapiola Life                                 Boards of the companies, with the excep-      In addition, Tapiola has Advisory
 (Tapiola Mutual Life Assurance Company)
 Tapiola Pension                              tion of Tapiola Pension, in the moni-         Committees for agriculture and forestry,
 (Tapiola Mutual Pension Insurance Company)   toring of Tapiola Group’s operations and      consumers and business, banking and
 Tapiola Bank Ltd.                            prepares matters to be dealt with by the      agents, pension affairs and those insured
 Tapiola Asset Management Ltd.
 Tapiola Real Estate Ltd.                     Supervisory Boards.                           under Tapiola Pension.
 Tapiola Data Ltd.

2     TAPIOLA GROUP     Annual Report 2009
                                                                                                                                                  Tapiola Group

                                    Medical expenses insurance                        Home insurance

                         Accident insurance                                                                   Animal and pet

                 Child insurance                                                                                      Travel insurance

                                             Households                                       Self-
            Life Insurance                                                                  employed                       Liability insurance

        Pension cover                                        Annual General                                                      Vehicle insurance

                                                                                                                                     Boat insurance
Owner-customer                                           Use of influence                                     Companies
                                                                                                                                    Forest insurance

             Loans                                               Committees                                                           insurance

              Banking                     Agricultural
              services                    and forestry                         Major customers                         Savings insurance

                          Cards                                                                                    Pension savings

                                  Accounts                                                              Savings accounts

                                                Index loan                               Mutual funds
                                                             Savings and
The General Meetings and Advisory
Committees are the channels for Tapiola’s
owner-customers to influence Tapiola’s operations.
Tapiola Group uses its profits for the development
of services, products and benefits.

How do the customers benefit?
                                                                    Benefits distributed by Tapiola                        Customer satisfaction*
                                                                         to owner-customers
The surplus of Tapiola Group’s operations is used                  EUR m                                             %
to benefit owner-customers. Some of the result is                   120                                              100

used to strengthen the company’s solvency, thereby
securing the payment of benefits to customers and                   90                                                75
the development of services also in the future.
Customer benefits consist of the companies' customer                60                                                50
bonuses, loyalty benefits, discounts, the bank’s
interest rate benefit and service benefits. Tapiola’s
                                                                    30                                                25
loyal insurance and banking customers receive the
best permanent customer benefits in Finland.
                                                                     0                                                 0
   A total of EUR 92,3 million was paid to the customers                   2005          2007          2009                  2005          2007          2009
                                                                                                                                    2006          2008
in 2009 as discounts and benefits granted.                                        2006          2008
                                                                         Figures include owner-customer                          Households
                                                                         benefits of non-life insurance and                      Companies
                                                                         mutual life assurance companies.                  * Percentage of excellent grades

                                                                                                                  Annual Report 2009 TAPIOLA GROUP              3
A good year for Tapiola
Tapiola Group's good performance in 2009 resulted from profitable investments,
growth of business volume and decrease in claims incurred. The strong recovery
measures in the global economy turned the development of the financial markets
around after the crash of the previous year. Furthermore, the focus on costs in
the companies and pricing that better correlates with the risks have started to
bear fruit as planned.
Year of recovery in investment                     Tapiola Pension’s solvency ratio rose           Tapiola Asset Management and
activities                                      to 23.7 per cent, and the solvency margin       Tapiola Bank expanded their customer
Tapiola Group had a successful invest-          increased to 3.0 times the solvency limit.      base and their results showed a profit
ment year. Tapiola General’s net invest-                                                        despite the difficult market conditions.
ment income at current value was 7.2 per        Benefits to owner-customers                        Nearly 70 per cent of the customers
cent. Tapiola Life Group’s net investment       increased and customer satisfaction             are willing to recommend Tapiola Group.
income at current value stood at 7.0 per        improved
cent. In the subsidiary Tapiola Corporate       Tapiola’s Omaetu was chosen the best            International co-operation expanded
Life, which merged with its parent com-         customer loyalty programme of the               Tapiola strengthened its international
pany at the end of the year, net income         year. This proves that the benefits and         network early in 2010 by becoming a
was 6.8 per cent.                               discounts offered to the owner-customers        full member in Eurapco, a consortium
    Tapiola Pension's return on capital         are at a good level. Tapiola paid its owner-    of European independent insurance and
employed at current value reached 13.5          customers a total of EUR 92.3 million in        financial houses.
per cent, the best ever. Tapiola Pension        benefits. This is EUR 1.7 million more              Through the Eurapco membership,
augmented its investments in companies          than the year before. Tapiola Pension’s         Tapiola wants to respond to changes
considerably during the year.                   bonuses and rebates totalled EUR                in the market and enhance its service
                                                18.6 million, up EUR 5.9 million on the         and product offering to the customers.
Tapiola Group’s solvency improved               previous year.                                  Furthermore, Tapiola is continuing its
The solvency capital of the parent                  Premium income from Tapiola’s               established international co-operation
company, Tapiola General, rose to               schemes for the management of corpor-           with other insurance and reinsurance
EUR 1,317.0 million. The solvency ratio         ate customers’ personnel insurance              companies and industry associations.
(solvency capital in relation to premiums       increased more than expected in 2009.               In Eurapco, Tapiola will continue its
earned) rose to 203.6 per cent. The             The general economic situation was              co-operation with Länsförsäkringar, a
company’s solvency level is excellent.          reflected in premium income from the            Swedish group of independent regional
Tapiola Life’s solvency ratio rose to 17.3       corporate segment through lower pay-           companies.
per cent. Tapiola Bank’s solvency ratio         rolls in statutory personal insurance               Tapiola is an active member in various
remained strong; at the end of the finan-       and a decrease in investments made              international interest supervision and
cial year it was 16.3 per cent.                 by companies.                                   research organisations of mutual insurers.

            Premiums written,                              Life insurance income                            Tapiola Bank’s deposit
            non-life insurance                                                                                and credit capital
    EUR m                                            EUR m                                          EUR m
    800                                              240                                            1,600

    600                                              180                                            1,200

    400                                              120                                             800

    200                                               60                                             400

      0                                                0                                               0
          2005          2007          2009                   2005          2007          2009                2005          2007          2009
                 2006          2008                                 2006          2008                              2006          2008
                                                                                                                Credit capital
                                                                                                                Deposit capital

4     TAPIOLA GROUP        Annual Report 2009
Economic performance indicators
Turnover of Tapiola Group companies (EUR m)

                                                                                 2009            2008            2007
Tapiola General                                                                  806.3           682.6           793.6
Tapiola Life, Group                                                              461.6           196.3           406.6
Tapiola Bank Ltd.                                                                 55.8            73.4            42.9
Tapiola Asset Management Ltd.                                                     12.0            10.2             8.1
Tapiola Real Estate Ltd.                                                           7.5             6.7             5.5

Premium income of Tapiola Group companies (EUR m)

                                                                                2009            2008             2007
Tapiola General                                                                 675.1           648.9            628.7
Tapiola Life Group                                                              233.1           205.0            202.4

Tapiola Group’s investment income at current value, %

                                                                                  2009            2008           2007
Tapiola General                                                                     7.2            -4.6            4.9
Tapiola Life, Group                                                                 7.0            -1.2            3.9

Operating results of Tapiola Group companies (EUR m)

                                                                                  2009            2008           2007
Tapiola General                                                                    83.0           -52.8          144.7
Tapiola Life, Group                                                                66.6            16.9          115.8
Tapiola Bank Ltd.                                                                   1.7             1.6            -2.1
Tapiola Asset Management Ltd.                                                       0.5            -0.2             0.5
Tapiola Real Estate Ltd.                                                            0.7             0.5             0.1

Solvency of Tapiola Group companies

                                  Indicator                                      2009            2008            2007
Tapiola General                   solvency ratio, %                              203.6           189.2           227.8
Tapiola Life, Group               solvency capital, % of technical provisions     17.3            14.8            15.4
Tapiola Bank Ltd.                 solvency ratio (Basel II), %                    16.3            18.7            17.3
Tapiola Asset Management Ltd.     solvency (Basel II), %                          37.6            52.7            40.7
Tapiola Real Estate Ltd.          equity ratio, %                                 42.5            27.8            13.4

Tapiola Pension’s key figures

                                                                                  2009           2008            2007
Turnover, EUR m                                                                 1,891.3        1,278.5         1,634.4
Premiums written, EUR m                                                         1,388.0        1,403.0         1,273.7
Net return on investment at current value, %                                       13.5           -8.3             4.1
Overall result, EUR m                                                             583.1         -612.2           -78.2
Solvency margin, % of technical provisions                                         23.7           16.2            21.3
Loading profit                                                                     84.2           81.8            81.1
Solvency margin in relation to solvency limit                                       3.0            2.9             1.8

                                                                                  Annual Report 2009 TAPIOLA GROUP   5
Events in 2009

Tapiola initiated Private banking business                   health and life risks, called Yrittäjän Omaturva.    Companies can also order various safety signs
Tapiola initiated Private banking business at                   The Omaturva schemes were introduced,             for their use from the online service.
the beginning of April. Tapiola Private refers to            because Tapiola had realised that farmers and
management of the assets of wealthy private                  entrepreneurs usually take out insurance poli-       The consumers’ verdict: Tapiola is the most
customers through the use of various invest-                 cies for their machines, equipment and other         trustworthy insurance company in Finland
ment instruments. The service was developed                  assets, but they and their families often have       For the sixth time, Tapiola Group was chosen
in co-operation with customers, which is why                 inadequate illness, accident, disability and         the most trustworthy insurance company in
the commitments to customers are non-tradi-                  pension cover.                                       Finland in the Trusted Brand survey conducted
tional in the industry. For example, in discre-                                                                   by Reader’s Digest. In its category, Tapiola re-
tionary asset management no management                       Tapiola Group and Pirkanmaan Hospital                ceived 28 per cent of the nominations in Fin-
fee is charged to the customer if the set goals              District co-operate in brain injury research         land. According to the survey, Tapiola is parti-
are not achieved.                                            Tapiola Group and the Pirkanmaa hospital             cularly trusted by people with under-16-year-old
                                                             district agreed on co-operation, according           children and people who are under 50 years
Term life insurance packages tailored                        to which Tapiola policyholders are examined          old. Regionally, the strongest trust was seen
for farmers and entrepreneurs                                for brain injury in the event of traffic or other    in Eastern and Northern Finland.
                                                             accidents in which they hurt their head, even
                                                             in less serious cases.                               Customers are loyal to Tapiola Bank
                                                                 Injuries are assessed at the brain injury cli-   Tapiola Bank came eighth in a customer loy-
                                                             nic of the Tampere University Hospital. Accord-      alty index study. The customer loyalty index
                                                             ing to the co-operation agreement, even those        survey was conducted in May 2009 by the
                                                             sustaining a mild head injury are sent as early      Finnish Direct Marketing Association together
                                                             as possible for examination to determine the         with the Markkinointi & Mainonta magazine
                                                             possibility and seriousness of brain injury.         and Avaus Consulting. The survey was ans-
                                                                                                                  wered by 2,421 consumers. According to the
                                                             New online services for companies                    results, Finns are most loyal to smaller banks
                                                             Online services for companies were renewed.          and online stores.
Together with MTK (the Central Union of                      This made the use of Tapiola’s online services
Agricultural Producers and Forest Owners),                   easier than before. For example, message             Customer satisfaction survey: Tapiola is the
Tapiola developed a comprehensive scheme                     exchange in the online services was impro-           second best insurance company
for farmers for the management of their perso-               ved. The most important forms, certificates          In a customer satisfaction survey conducted
nal life and health risks. This scheme, Maatila-             and statistics were gathered together in the         among household customers, Tapiola was
yrittäjän Omaturva, complements the statutory                Asiointi section.                                    chosen the second best insurance company in
farmers’ social insurance cover provided by                     In the online service, customers can              Finland. Satisfaction was highest among under-
MELA (Farmers’ Social Insurance Institution).                check their paid, outstanding and upcoming           29-year-olds. This was the result of the EPSI
Moreover, Tapiola co-operated with an entre-                 TyEL and YEL instalments. The TyEL instal-           Rating survey that measured customer satisfac-
preneur association to develop a solution for                ment calculator shows the effect of the num-         tion in Finnish non-life insurance companies.
entrepreneurs for the management of personal                 ber of instalments on the amount to be paid.         In 2009, customer loyalty to Tapiola improved

Co-operation with the Finnish Red Cross                                                                           Jere Lehtimäki was awarded for
(SPR) continues                                                                                                   safe work methods
Since 2002, Tapiola Group has been suppor-                                                                        In the Taitaja 2009 skills competition, Jere
ting the volunteer friend visitor service of the                                                                  Lehtimäki from Vocational Education Centre
Finnish Red Cross, and the agreement was                                                                          Sedu, Seinäjoki, was awarded for safe working
now extended to 2013. This activity arranged                                                                      methods in cabinetmaking. In the Taitaja com-
by the Red Cross supports the social life of the                                                                  petition, young VET students and apprentices
elderly.                                                                                                          compete for the Finnish championships in vo-
                                                                                                                  cational skills. Jere Lehtimäki was fifth in the
Photo Ahti Kaukoniemi

                                                                                                                  overall competition in Cabinetmaking, but he
                                                             Oma Stipendi scholarship to a circus artist          won the occupational safety section.
                                                             Tapiola awards its young customers with
                                                             incentive scholarships. In 2009 the scholar-
                                                             ship, Oma Stipendi, was awarded to Oskar
                                                             Rask, a young circus artist from Lahti. The
                                                             EUR 15,000 award was now granted for the
                                                             third time.

   6                    TAPIOLA GROUP   Annual Report 2009

                                                   Tapiola Pension’s investment organisation         balanced funds Tapiola 2010, 2015, 2020
                                                   is the best in Europe                             and 2025 – are now 10 years old. The funds
                                                   Tapiola Pension’s investment operations were      have been very successful in comparisons
                                                   chosen the best investment organisation in        conducted by impartial fund rating com-
                                                   Europe in 2009 in the international category in   panies. The high ratings of Tapiola’s funds
                                                   the competition arranged by Investment and        show that based on the return/risk ratio, the
                                                   Pensions Europe (IPE). This contest for Euro-     performance of the funds good.
                                                   pean pension investors has been arranged
                                                   by IPE since 2001. Hundreds of pension in-        Tapiola’s funds ranked highest in the Eufex
                                                   surance companies and investors of pension        efficiency analysis
                                                   funds from nearly all European countries take     At the end of 2009, the return on Tapiola
                                                   part in the competition each year. Pension        Asset Management’s all funds in relation to the
                                                   fund investors from 38 countries took part        risk taken was the highest among Finnish fund
by 1.9 points on the previous year. In this sur-
                                                   in this year’s competition.                       companies, according to the fund rating com-
vey, about 3,000 Finns were interviewed by
                                                                                                     pany Eufex’s efficiency analysis (source:
                                                   Excellent rating for Tapiola General     5.1.2010).
                                                   The American A.M. Best Co, the oldest and
Tapiola’s Omaetu was chosen the best
                                                   most highly respected rating institution spe-     Tapiola Group was awarded for promotion
benefit programme of the year
                                                   cialising in the insurance business, awarded      of employee well-being
Loyal Customer Forum, an information ser-
                                                   Tapiola General a rating of A (Excellent). A.M.   Tapiola Group was awarded as the best Fin-
vice specialised in loyal customer marketing
                                                   Best has rated Tapiola General three times,       nish workplace in the Move Europe campaign
and customer benefit programmes, nominated
                                                   and the rating has remained unchanged from        organised by European Network for Workplace
Tapiola’s benefit programme as programme of
                                                   2006 to 2009.                                     Health Promotion (ENWHP). Tapiola Group
the year 2009. The nomination was based on
                                                                                                     shared the first place with the City of Pori.
the Forum’s annual loyal customer barometer,
                                                   Tapiola World 50 – the best Nordic
which surveys customers’ opinions on loyal
                                                   balanced fund                                     Harri Lauslahti is the Influencer of the Year
customer programmes and their satisfaction
                                                   The fund rating company Lipper chooses the        in banking and insurance business
with, for example, their own insurance com-
                                                   best funds in different categories each year.     Harri Lauslahti, Tapiola Bank’s Managing
                                                   In 2009, Lipper awarded Tapiola World 50 as       Director, was appointed the Influencer of the
    Compared with its main competitors,
                                                   the best fund in its category among all Nordic    Year in the banking and insurance industry at
Tapiola’s customers were particularly satisfied
                                                   mutual funds. The comparison was based on         the VaikuttajaForum gala arranged by Manage-
with the way Tapiola informs its customers
                                                   the return/risk ratio.                            ment Events. Tapiola Bank has influenced the
about the Omaetu benefits.
                                                                                                     Finnish market primarily through new, trans-
                                                   Tapiola’s first funds are 10 years old            parent products and services.
                                                   Tapiola Asset Management’s first funds –
                                                   Tapiola Europe, Tapiola World 80 and the

                                                   by the Central Association of Women Entrepre-     lectures in 2009. Tapiola Group arranged a
                                                   neurs in Finland and Tapiola Group.               number of events around Finland in co-oper-
                                                                                                     ation with an entrepreneurs’ organisation. The
                                                   Tapiola’s Housing Fair building was donated       speakers included Pauli
                                                   to a support association for the mentally         Aalto-Setälä, Outi Mäen-
                                                   disabled                                          pää, Anna Sorainen and
                                                   Tapiola donated its house at the Valkeakoski      Kai Hyttinen.
                                                   Housing Fair to Tampereen kehitysvammais-
Kultainen Oras award for private care home         ten tuki ry, a support association for the men-   Recognition for six
service provider                                   tally disabled. Each year since 2007, after the   canine heroes
In 2009, the Kultainen Oras (“Golden Sprout”)      closing of the annual housing fair Tapiola has    Tapiola Group and the Finnish
award was granted to Riikka Pikkarainen, a         donated its Housing Fair house to a local non-    Kennel Club granted awards
young entrepreneur from Kajaani. She is the        profit organisation that needs a building and     to six dog heroes. Since 1997,
owner and managing director of the private         has a place for it.                               the Finnish Kennel Club be-
care home Palvelukoti Onni Oy, offering nursing                                                      stows the title of hero dog on
and care services for the elderly. The award is    Interaction and emotional intelligence            dogs who have significantly cont-
granted every other year to a young, innovative    at Entrepreneurs’ Evening School                  ributed to saving human life.
woman entrepreneur. The award is sponsored         Interaction and emotional intelligence were the
                                                   main themes of Entrepreneurs’ Evening School

                                                                                                         Annual Report 2009 TAPIOLA GROUP        7
Amid big changes
Tapiola Group had a good year in 2009, both financially and
operationally. I am relieved to say this, because we started the
year facing challenges that were due to the crash of the financial
market in 2008 and earlier changes among competitors in the

Successful solvency management has             Society must ensure the survival               Tapiola wants to be a communal
created a basis for systematical develop-      of the mutual company form                     financial group
ment of our services in a competitive field    There is high social demand for the            In my opinion, even in the best case the
that is dominated by financial department      mutual company form, because compa-            real economy is now facing a period of
stores managed by large banks. Tapiola         nies owned by their customers lead the         slower growth, and the structures of the
Group continued on a track of profitable       development of the financial industry          Finnish economy will continue to change.
growth. The personnel have shown their         more strongly into a direction that            This will present great challenges to
ability to form a learning organisation.       stresses the needs and benefits of             social decision-making and the sustain-
This is essentially important in a situation   the customers. However, society must           ability of the national economy and our
where the future is vague in many ways         be able to ensure the survival of the          pension system. In this situation, inter-
because of the considerable uncertainties      mutual company form in a manner that           nationally competitive companies that
in the global economy.                         strengthens our customer-driven identity.      are committed to Finnish society have an
    The financial crisis which spread into         Even though the Finnish banking and        increasingly important role. Tapiola Group
the real economy in 2009 is primarily a        financial system has not been in the           wants to be such a group of communal
banking crisis and a result from valuing       centre of the storm this time, the centrali-   financial service companies.
profit over everything else without any        sation level of the Finnish financial field        I would like to thank all of Tapiola’s
consideration for others. The bill that the    is so high that the problems arising from      personnel and all members of Tapiola
rest of the world will have to pay for this    this situation can no longer be ignored        Group’s administration for their contri-
is shockingly high. In addition to better      in discussions concerning the future of        bution to building Tapiola Group into a
control and regulation, the financial          our financial system. A bipolar market         group of companies with a high standard
industry necessarily needs new values,         structure, such as our earnings-related        of corporate responsibility. This work will
with the players taking into account the       pension scheme, would be unacceptable.         never end, and we need time and under-
long-term effects of their actions. Effi-      It should not be accepted in a market          standing to make progress. I would also
cient self-regulation is the best means for    economy. Such a structure undermines           like to thank our customers. By choosing
ensuring the stable economic growth that       the credibility of decentralisation of the     Tapiola, you support progress and make
we need. This is a big challenge for busi-     system, which is also the case with the        this work possible. In this way, we can
ness management training and corporate         earnings-related pension scheme.               create stability and safety together, even
governance. It is particularly important                                                      amid big changes.
for the financial industry, because its
role in the economy and society requires                                                      Asmo Kalpala
adopting a responsible attitude.                                                              President
                                                                                              Tapiola Group

8     TAPIOLA GROUP    Annual Report 2009
                Review by the President

In June 2009, Tapiola’s Supervisory
Boards have decided that Asmo Kalpala
(born 1950) will continue as Tapiola Group
President until 31 December 2012.

    Annual Report 2009 TAPIOLA GROUP    9
Tapiola’s strategy for 2010–2012

Responsibility to customers –
success through profitable choices

Tapiola Group renewed its strategy
in 2009. Tapiola’s business idea is to
provide its customers with benefits and                                                    Vision
sustainable solutions for well-being
and success. We want to take care of
                                                                                    We take care of our
our customers so actively and compe-                                             customers so actively and
tently that they are willing to recommend                                          competently that they
us to others. The business is based on
                                                                                      recommend us
responsibility, which is emphasised in
the values and the Group’s responsibility                                                to others.

Strategic        Management                 Outperforming     Processes in          Anticipatory
choices          of economy                   the market      line with the           caring
                 and stability               and sectoral         vision

                                                    Business idea
     – Responsibility to customers
                                                 Tapiola provides its         Responsibility commitments
                                               customers with benefits         to customers, personnel,
          – Customers’ benefit
                                              and sustainable solutions        environment and society
         – Succeeding together
                                                  for well-being and
       – Making responsibility an
             everyday issue

10    TAPIOLA GROUP   Annual Report 2009

Caring for customers is an important element
in strategic choices
Tapiola Group’s business is managed                Management of economy and stability           The strategic choice processes in line
through three customer segments. The            aims for maintaining good solvency           with the vision aims for an increased
private household customer segment              and achieving good financial perform-        number of people recommending us.
comprises households, self-employed             ance measured with any criteria. The         This requires, for example, clarification of
customers and agriculture and forestry          goals include significant improvement of     the product and service range, consider-
customers. The business customer                expense ratios, good risk selection and      able increase in the use of online serv-
segment provides services for companies,        related pricing, as well as investment       ices, improvement of Tapiola personnel’s
major customers and organisations. The          expertise in an uncertain operating envi-    competence and generation of added
banking, savings and investor customer          ronment.                                     value for customers and Tapiola through
segment is responsible for the co-ordina-          Outperforming the market and              networking.
tion and development of banking, asset          sectoral diversification require increased       Anticipatory caring aims for posi-
management and life assurance busi-             customer loyalty and sales. The goals        tive experiences of service and caring.
ness in order to promote Tapiola’s sectoral     include promotion of Tapiola Bank’s          The objectives include further improve-
diversification.                                earning power and growth, synergic           ment of customer satisfaction and work
    The strategy is based on four choices:      benefits of banking and insurance busi-      climate in customer service, as well as
management of economy and stability,            nesses, making use of new forms of           strengthening of segment management
outperforming the market, sectoral diver-       pension savings and expansion of the         in order to ensure genuine customer-
sification, processes in line with the vision   service and distribution network.            driven approach and improve the quality
and anticipatory caring for customers.                                                       of caring.
Furthermore, the strategy is based on
responsible conduct throughout the
group of companies.

Tapiola honed its values as part of the strategy process. The values are: customers’
benefit, succeeding together and making responsibility an everyday issue.

      Customers’ benefit
         •	 all customers are equal as owners
         •	 safe overall affordability also in the long run
         •	 customers’ experiences at the core of development

       Succeeding together
         •	 together with customers and other stakeholders
         •	 together with the Tapiola people, joining our resources
         •	 commitment to the goals we have agreed on

      Making responsibility an everyday issue
        •	 all business operations are based on responsibility
        •	 responsibility assumed by each employee
        •	 renowned for its commitment to the promotion of corporate

                                                                                                Annual Report 2009 TAPIOLA GROUP     11

Responsibility commitments
At Tapiola, responsible business conduct means corporate responsibility in accord-
ance with the principles of sustainable development. Tapiola describes corporate
responsibility using a fourfold table that includes the company’s responsibility for
customers, responsibility for personnel, responsibility for environment and respon-
sibility to society. In 2009, Tapiola initiated a corporate responsibility project that
concerns the entire organisation. Tapiola’s responsibility commitments were com-
piled as a result of this project.

  Commitments to customers                                    Commitments to personnel

  Tapiola speaks its customers’ language                      We encourage responsible management
  We want to be Finland’s most comprehensible finan-          We expect supervisors to act responsibly in managerial
  cial house. We are committed to improving the quality,      work. Responsible management is included in supervisor
  comprehensibility and clarity of our products and serv-     training. Supervisors are encouraged to take an active
  ices, as well as the transparency of our operations.        approach to managerial work, and they are required to
                                                              have an unbiased attitude to the employees’ work perform-
  Owner-customers to develop Tapiola’s operations             ance. This includes improving the personnel’s competence
  Tapiola is a mutual company, and our customers are also     and motivating and encouraging each one of them
  our owners. We want our customers’ voice to be heard in     in responsible conduct.
  our products and services. We are committed to giving our
  owner-customers and other stakeholders more opportunities   Everyone to promote corporate responsibility
  to take part in the development of our operations.          We want every Tapiola employee to promote awareness
                                                              of corporate responsibility at Tapiola. This is the only way
  The development of our products, services and               to make responsibility an everyday issue in our work. This
  investment activities is based on responsible               includes improving knowledge of responsible conduct so
  conduct                                                     that all Tapiola employees know exactly what responsibility
  We emphasise corporate responsibility in the development    means in their job.
  of our products, services and investment activities. This
  includes improving our own expertise in the evaluation      Well-being at work gives balance to life
  and management of new risks, as well as en-                 We are committed to improving Tapiola employees’ well-
  couraging customers to make responsible                     being at work.
  choices by offering them options.                              This includes creating a good balance between work
                                                              and leisure and promotion of diversity in the work commu-

12   TAPIOLA GROUP   Annual Report 2009

Commitments to environment                                     Commitments to society

Less burden on the environment and climate                     Tapiola is an active influencer on the values
We are committed to reducing our impact on the environ-        of corporate responsibility
ment and climate. This means that we will have to find         Responsibility requires someone to show the way. Tapiola
ways for reducing Tapiola’s carbon footprint. We increase      wants to continue active participation in social discus-
online services, develop eco-efficient work methods            sion. We undertake to take the initiative as a party that
and encourage our customers to act responsibly. We will        influences the values of corporate responsibility, and we
develop responsibility criteria for our purchases.             want to promote the development of value-based business
                                                               competence at university level.
More emphasis on the management
of environmental risks                                         Promoter of responsibility in society
We are committed to improving the management of new            Tapiola is committed to promoting financial literacy in
environmental risks together with our stakeholders: the        society. We take part in national and international stake-
management of environmental risks requires better exper-       holder co-operation and development projects that
tise and networking in order to be able to better anticipate   promote responsible conduct.
the needs of loss prevention and risk management.
                                                               Well-established business operations support
We take part in the discussion on climate change               social stability
All of us will feel the impacts of climate change in our       Insurance and banking businesses have a significant
work. Adapting to it and efforts to decelerate it require      effect on society and the people’s everyday life. Tapiola is
that Tapiola as a risk management professional will            committed to taking care of social stability by keeping its
engage in environmental communication and guidance             operations profitable and financially sound. This requires
to its personnel, customers and stakeholders.                  systematic, long-term financial activity and efforts to
    Tapiola takes part in internal and public discussion       anticipate changes in society and to maintain the working
on the climate change.                                         capacity of Finns.

                                                                             Read more about corporate responsibility
                                                                                                        on page 32.

                                                                                       Annual Report 2009 TAPIOLA GROUP       13
Tapiola customers

Management of a multicultural work force

Itella is a forerunner in Finland in message transmission and logistics – and multi-
culturality. Itella’s offices in Finland employ about one thousand people with an immi-
grant background. They represent more than 70 nationalities. Text Matti Remes • Photo Mikko Hannula
Multiculturality has brought new aspects         “You cannot tell an employee that the       culture. However, it is not acceptable to
to human resources management and well-      collective labour agreement says nothing        be late for work, and a ten-minute break
being at work. Itella has used Tapiola’s     about taking prayer breaks and that’s it.       must not be extended to 20 minutes.”
expertise in risk assessment and promotion   You have to find a satisfactory solution for
of well-being at work.                       the situation,” Ms Karppinen states.            More attention on well-being at work
    “Everything is based on understanding        Development Manager Wilberforce             Itella’s Director for Wellbeing at Work,
that in a multicultural work community       Essandor is responsible for multicultural       Lisbeth Forsman-Grönholm predicts that
you need a different managerial approach     affairs at Itella. He stresses that diversity   multicultural affairs will become increas-
than in a monocultural one,” says Tuike      is accepted, but the rules are the same         ingly important at Finnish workplaces.
Karppinen, the Vice President responsible    for everyone. “For example, the concep-         She thinks that more attention should be
for HR at Itella.                            tion of time may vary depending on the          paid to well-being at work in general.
                                                                                                 “The most important goals of
                                                                                             promoting well-being at work include
                                                                                             preventing accidents and decreasing
                                                                                             absences due to illness and premature
                                                                                             retirement,” Ms Forsman-Grönholm lists.
                                                                                                 Tapiola and Itella’s Foundation for
                                                                                             Wellbeing at Work carried out the No
                                                                                             Accidents Today project. Its objective was
                                                                                             to increase awareness of the importance
                                                                                             of occupational safety, responsibility
                                                                                             issues and risks at the workplace.
                                                                                                 “The project gave us new, efficient
                                                                                             tools for risk assessment,” Ms Forsman-
                                                                                             Grönholm explains.

                                                                                             Multicultural Itella has used Tapiola’s expertise
                                                                                             in work risk assessment and promotion of well-being
                                                                                             at work. IT student Mesfin Seble works part-time
                                                                                             as a sorter of letters at Itella’s post centre.

14   TAPIOLA GROUP   Annual Report 2009
                                                                                                                         Tapiola customers

Risk management helps to tackle hazards

Pyroll Group wanted to tackle the risks related to its operations and initiated co-oper-
ation with Tapiola’s experts to develop a comprehensive risk management policy.
Text Maarit Seeling • Photo Mikko Hannula

By identifying risks well in advance the          safety-promoting measures correctly and      “We want to have a regularly updated tool that
                                                                                               we can use for continuous assessment of risks in
company gets more time to develop                 to be able to avoid even one accident at     the operating environment,” says Hannu Vakkari,
emergency plans and ensure the conti-             work through appropriate risk manage-        Managing Director of Pyroll.
nuity of operations. Pyroll Group, founded        ment,” Mr Vakkari assures.
in 1973 in Pyhtää, initiated improvement              “Moreover, companies should also be
of its risk management policy in co-oper-         prepared for unexpected events – what
ation with Tapiola.                               if the economic development suddenly
    Managing Director Hannu Vakkari               stops, your partners fail you, competitors
admits that before the project, risks and         catch you off guard or customers fail to
hazards were dealt with case by case.             pay,” he lists.
    “From the human point of view, it is
of great importance to be able to allocate

Pyroll is a converter of paper, cardboard and
plastic and operates as a paper merchant at ten
locations in Finland and Poland.

                                                                                                   Annual Report 2009 TAPIOLA GROUP          15
Tapiola customers

Entrepreneur couple says no to risky business

Four years ago, Heli Lehtinen and Tuomo Härkönen decided to
became entrepreneurs. They also decided that they will not take
any risks with their own health.
Text Pekka Moliis • Photo Arto Tulima

Even though the industry and the                   Insurance cover tailored for entre-               In addition to risks relating to the
company, Kajaanin Hautauspalvelu               preneurs consists of Tapiola’s personnel          entrepreneurs’ own health, business also
funeral service, were familiar to them,        risk package, called Yrittäjän Omaturva.          involves equipment-related risks. “Busi-
there was still much to learn. “All the        Being prepared for unexpected personal            ness interruption cover is extremely
paper work was new to us, as well as the       injuries is essential for a small business,       important for us and our equipment.
responsibility associated with running         where the entrepreneurs are the only full-        The business must go on in any circum-
your own business. Our insurance cover         time employees.                                   stances,” Tuomo Härkönen stresses.
was one of the most important ques-                Working in funeral service can some-             “Most funerals take place on week-
tions,” the couple relates.                    times be hard, both mentally and physi-           ends, and we often hire extra help then.
                                               cally. The couple never questioned the            We have a reserve of about ten people
                                               importance of being prepared for health-          who come to work when needed.”
                                               related risks. “You may have the most                Many people have moved to Southern
                                               sparkling cars in town standing in your           Finland, and this has an effect on funeral
                                               front yard, but they are of little help if your   arrangements. It is increasingly common
                                               health fails you. Our own contribution is         that family members and other people
                                               essential for the business,” the entrepre-        attending a funeral live quite far away.
                                               neurs say.                                        Kajaanin Hautauspalvelu provides full
                                                                                                 service and takes care of all the arrange-

                                                                                                 Being prepared for unexpected personal inju-
                                                                                                 ries is essential for a small business, where the
                                                                                                 entrepreneurs are the only full-time employees.
                                                                                                 Heli Lehtinen frequently contacts customers by
                                                                                                 email or telephone, because the relatives of the
                                                                                                 deceased often live far away.

16     TAPIOLA GROUP      Annual Report 2009
                                                                                                                            Tapiola customers

Improved performance through
occupational safety training
At Veho Hyötyajoneuvot, investments in occupational safety and coping at work
are also investments in systematical improvement of performance. In addition,
Veho wants to be the most attractive employer in its industry.
Text Timo Sormunen • Photo Rami Lappalainen

“When your body is in shape, you have             “Until then, we had only four commer-          No unnecessary risks
more energy to work. And when your brain      cial vehicle units and about one hundred           “Everyone knew that most accidents and
is working clearly, you are less prone to     mechanics around Finland. The acqui-               close call situations at work are the result
accidents,” summarises Director Juha          sition tripled the number of personnel             of careless conduct, either by yourself or a
Ruotsalainen from Veho Hyötyajoneuvot.        in one go. It was evident that we had to           colleague. Hoses, tools, oil splashes or old
   A couple of years ago, the company         harmonise our procedures,” Mr Ruotsa-              spare parts are not left on the floor, and
launched a development project that           lainen relates.                                    being in a rush is not an excuse for taking
focused on occupational safety, accidents         After the Sisu-Auto Huoltopalvelut             unnecessary risks. The use of eye protec-
at work, coping at work and illness-related   acquisition, the project really got underway.      tors is obligatory, both for young workers
absences. The project promoted aware-         The Mehiläinen Clinic – the company’s              and experienced veterans,” Mr Ruotsa-
ness of these issues among the supervisors    occupational health service provider –             lainen lists.
and employees. In the background there        and Tapiola were included in the project.              The effects of Veho’s zero tolerance
was the major acquisition made in 2007,       Tapiola provided practical advice and solu-        project were soon seen in the statistics
which involved incorporating the 16 service   tion models developed in other companies           compiled by the Mehiläinen Clinic.
points of Sisu-Auto Huoltopalvelut, located   with similar problems.
around Finland, in the Veho Hyötyajoneuvot
                                                                             Tidiness improves occupational safety. “It is nice for the next worker to
network.                                                                    come to a tidy workplace,” says heavy equipment mechanic Ville Heldan.

                                                                                                      Annual Report 2009 TAPIOLA GROUP           17
Tapiola customers

Well-being at work is emphasised in a farmer’s life
Text Tiina Laaninen • Photo Ossi Ahola

being of animals must also be ensured.

Merja and Kari Keisala have a farm in Töysä. They attend to the well-being of
the farm animals and take care of their own coping as entrepreneurs.

                                               Merja and Kari Keisala think that the best   out the payments and makes them
                                               things about being a farmer are the inde-    easier to manage. The couple thinks that
                                               pendence and diversity of the job. The       Tapiola’s insurance products for farmers
                                               diversity also involves risks.               are comprehensive, but life insurance
                                                   “When you actually live at the work-     could still be improved. In risk assess-
                                               place, it can happen that work takes up      ment, the entrepreneur’s personal coping
                                               all your time. It is probably also typical   at work is often not discussed at all.
                                               that machines and buildings are better          “Both the insurance company and the
                                               covered by insurance than the entrepre-      entrepreneurs themselves should shape
                                               neur.”                                       up in this respect,” Merja Keisala says.
                                                   Ten years ago, the Keisala couple got
                                               a powerful reminder, when a farmer their     Full circle of life
                                               age whom they knew died unexpectedly.        Currently there is room for 90 cows in
                                                   “We have sufficient life insurance       the free-stall barn. If the extension plans
                                               cover to ensure that if either one of us     progress as expected, a new free-stall
                                               was left alone to look after the farm,       barn will raise the number of cows to
                                               financial matters would not be the first     roughly 140.
                                               concern.”                                        “As long as we call the animals by
                                                   Each year the couple goes through        name, my work feels meaningful. The
                                               their insurance policies with Tapiola’s      presence of the full circle of life on the
                                               agent. They have also negotiated a           farm also feels important. It is palpable
                                               monthly payment scheme that evens            in the barn and on the pastures.”
                                                                                            Merja Keisala thinks that it is important to pay
                                                                                            attention to the farmer’s coping at work. The well-

18     TAPIOLA GROUP      Annual Report 2009
                                                                                                                         Tapiola customers

Peace of mind and easier life
through insurance policies
The Voutilainen family from Helsinki has four members. In addition to home insurance,
they feel that insuring the family members is also important. It is not that we are afraid.
The insurance policies are for caring, peace of mind and convenience, they say.
Text Anna Ruohonen • Photo Susanna Kekkonen

Elina and Pekka Voutilainen live in a solid    at a private clinic without having to wait in       “Without insurance, I would have had
stone house shielded by a white fence          line for ages. Elina Voutilainen has gone       to fly to Helsinki for treatment. I really
in a tranquil neighbourhood in Helsinki.       through this procedure with Aaro twice.         appreciate being able to choose my
In the livingroom, five-year-old Aaro is           Pekka Voutilainen, the family father,       doctor.”
throwing somersaults. He jumps to his big      took out an accident insurance and                  Pekka Voutilainen is a maintenance
sister Talvi’s lap, then to his mother’s.      medical expenses insurance policy for           manager, and there are twenty repair
    Talvi and Aaro Voutilainen are covered     himself when he started parachuting –           shops around Finland that he visits
 by medical expenses insurance.                however, now this dangerous sport is no         frequently. The most northern location
    “Children’s medical expense insur-         longer covered by insurance policies.           in Tornio in Lapland. Because he travels
ance makes life easier. Of course, in          Nevertheless, the insurance policy came         a lot, he considers life insurance very
Finland children do not necessarily need       in handy, when he had a skiing accident         important.
an insurance policy to receive medical         at Vuokatti. Playful snowboarding on the            “If anything happened to me, the
care, but it is very convenient,” says Elina   slopes ended with a big fall and broken         family would manage financially,” he says.
Voutilainen, who works as a laboratory         collarbone. The shoulder was immedi-
nurse at a hospital.                           ately operated in Kajaani.
    If your child has recurrent ear infec-                                                     The Voutilainen family likes to cook together. They
                                                                                               feel that insurance cover for the family members is
tions, you can have ear tubes inserted                                                         important.

                                                                                                   Annual Report 2009 TAPIOLA GROUP           19
Tapiola Group develops its products and services
based on customer needs
At group level, Tapiola’s business, customer solutions and services are developed and
coordinated in three segments:
– services for households, entrepreneurs and agriculture and forestry customers
– services for corporate customers, major customers and organisations
– banking, savings and investment services

       Development of the number                  Development of the number                 Development of the number
     of private household customers                 of corporate customers                   of entrepreneur customers
     1,000 persons                               1,000 customers                         1,000 persons
     800                                         24                                      100

     600                                         18                                       75

     400                                         12                                       50

     200                                          6                                       25

       0                                          0                                        0
           2005          2007          2009           2005          2007          2009         2005          2007          2009
                  2006          2008                         2006          2008                       2006          2008

20     TAPIOLA GROUP        Annual Report 2009
                                                                                                   Reviews by the Group Directors

Acclaim to customer benefits

Profitability of non-life insurance improved, sales of personal
insurance products increased considerably and Tapiola Omaetu
was chosen the loyal customer programme of the year.

Our owner-customers appreciate Tapiola        Successful co-operation with
for informing them clearly about the          entrepreneur organisation and MTK
benefits associated with the customer         The profitability of farmers’ insurance
relationship. The Omaetu scheme is            policies improved, thanks to the preven-
an insurance, banking, savings and            tive risk management work with our
investment service benefit programme          customers. We successfully launched a
that automatically includes all private       comprehensive personal risk insurance
customers of Tapiola Group. Omaetu            scheme for farmers in co-operation
includes loyalty benefits relating to         with MTK (the Central Union of Agri-
premiums, banking services, etc. The          cultural Producers and Forest Owners).
amount of Omaetu customer benefits in         This scheme is called Maatilayrittäjän        Arto Jurttila
2009 totalled EUR 64.1 million.               Omaturva.                                     Group Director
    Tapiola’s Omaetu was chosen the best          Moreover, together with an entrepre-      Services for private household customers,
loyal customer programme in 2009. This        neur association we developed a tailored      entrepreneurs and agriculture and forestry
proved that the benefits and discounts        personal risk insurance package for           customers.
offered to our owner-customers are at         entrepreneurs, called Yrittäjän Omaturva.
a sustainable and competitive level. The      The popular Entrepreneurs’ Evening
nomination was based on the Forum’s           School lecture series we once again           Comprehensible information is part
annual loyal customer barometer, which        arranged together was another result          of responsible conduct
surveys customers’ opinions on loyal          of good co-operation.                         Making responsibility an everyday issue
customer programmes and their satisfac-           We were an important YEL insurer of       is one of Tapiola’s values and an essential
tion with, for example, their own insur-      starting micro companies in 2009. Our         element of the mutual group’s philosophy
ance company.                                 challenges included the transfer of statu-    and ethical management. This refers to
    We want to ensure that we can             tory pension insurance policies and prof-     Tapiola personnel’s responsibility for good
continue to keep the discounts to owner-      itability of micro company business.          work performance.
customers at a good, sustainable level.                                                         Providing clear and comprehensible
    The profitability of non-life insurance   Efficient use of extensive expertise          information about our products and serv-
improved considerably during the year.        to benefit customers                          ices is another element of responsibility.
There was public discussion on the low        In 2010 we will keep in contact with          Transparency of the business benefits our
level of Finns’ personal insurance cover.     our customers even more actively than         customers and us alike.
This made our customers realise that they     before. We will hone our processes to
need to consider their personal cover         make them smoother for the customers.
more seriously, and sales of personal         We want to make even more efficient use
insurance policies increased.                 of Tapiola personnel’s extensive expertise
    The sales of motor vehicle and motor      to benefit our customers.
liability insurance policies decreased            Comprehensive management of our
compared with previous years. The             customers’ financial affairs is our central
reason for this was the drop in car sales     goal. Moreover, we have invested consid-
due to the economic recession. However,       erably in the development of online serv-
the profitability of motor vehicle and        ices, and this work will continue in the         Genuine comprehensive service
motor liability insurance policies remained   years to come. This way, we want to make         Tapiola’s private household customer
excellent.                                    it easier for customers to use Tapiola’s         segment is responsible for providing
    Tapiola received a record number of       services.                                        services to households, entrepre-
new customers in 2009. Customer depar-            From the beginning of 2010, we can           neurs and agriculture and forestry
tures were higher than normal, which is       offer our private household, farm and            customers. They are offered insur-
why the overall development of customer       micro company customers a comprehen-             ance, banking, savings and invest-
base was moderate.                            sive service package for financial and risk      ment services in accordance with
                                              management – all the essential banking           the comprehensive service concept.
                                              and insurance services.

                                                                                               Annual Report 2009 TAPIOLA GROUP    21
Reviews by the Group Directors

Considerable increase in fund capital of funds
managed by Tapiola Asset Management
Tapiola’s banking, savings and investment services were success­
ful in the challenging market conditions of 2009.

                                           Share prices increased, and the eco­                We want to treat our customers even
                                           nomic recession began to slow down in           more equally and fairly. In accordance
                                           the summer. Nevertheless, the budding           with the new grounds for bonuses and
                                           recovery of economy was still quite unpre­      rebates in life assurance, customers can
                                           dictable. The handling of the government        achieve higher additional return if the
                                           proposal concerning pension savings             guaranteed technical rate of interest is
                                           affected the market. Competition in general     lower.
                                           became more challenging during the year.            When we are building new pension
                                               The sharp decline in market interest        savings models, we aim for affordable,
                                           rates that began in late 2008 continued         easy­to­understand solutions. It is impor­
                                           in 2009. The decline resulted mainly from       tant to inform customers comprehen­
Jari Saine
                                           the decisions made by the central banks         sibly and openly about the formation of
Group Director
                                           concerning interest rates and crediting in      expenses and risks. In addition, we will
Banking, savings and investment
                                           order to revive the economy. On the other       implement the United Nations’ Principles
                                           hand, stock values took an upward turn.         for Responsible Investment.
                                               Uncertain future outlook caused stir­           In this strategy period, we will invest
                                           ring among customers of asset manage­           strongly in development of online serv­
                                           ment companies. Tapiola Asset Manage­           ices.
                                           ment received many new household
                                           and institutional investor customers. The       More innovative approach to work
                                           growth in customer numbers resulted from        The uncertain economy and employ­
                                           the Tapiola Private service developed in        ment outlooks have made us even more
                                           accordance with customers’ wishes and           careful with credit­granting. We want to
                                           increased customer loyalty.                     make sure that we do not grant loans
                                               The preparation of new pension savings      that customers will probably not be able
                                           legislation and the public discussion on        to pay back. Careful study of customers’
                                           retirement age slowed down the sales of         needs is also essential when we are
                                           voluntary pension insurance.                    providing investment advice. In our own
                                               The fund capitals managed by Tapiola        work we aim for an economical attitude
                                           Asset Management and the number of              in general, in the spirit of our income
                                           unit holders increased as planned. As           enhancement programme.
                                           regards investments, the performance of             In 2010, Tapiola will apply even more
                                           the funds managed by us was outstanding.        systematical and conceptualised oper­
                                           The development of premium income from          ating models. We will improve the effi­
                                           continuous savings life insurance was posi­     ciency of our work. This will require more
                                           tive.                                           innovative thinking and new, more effi­
                                               Tapiola Bank again recorded growth in       cient processes.
                                           the number of customers in 2009, but the            Tapiola is well equipped to improve
                                           growth was more moderate than before.           its performance in 2010. We have the
                                           Tapiola Bank’s and Tapiola Asset Manage­        required expertise and competence, in
                                           ment’s results showed a profit despite the      addition to competitive products and
We promote sectoral diversification        difficult market conditions.                    services. This is proven by the good
Banking, savings and investment serv­                                                      ratings our services have received from
ices are responsible for the implemen­     Customers are treated with respect              customers.
tation of sectoral diversification, and    Tapiola Group entered a new strategy                We want to continue providing the best
they co­ordinate the interaction between   period at the beginning of 2010. We will be     banking services in Finland to our loyal
Tapiola companies that offer banking,      paying even more attention to ensuring that     customers.
savings and investment services.           customers who have ended up in a difficult
                                           financial situation are treated with respect.

22    TAPIOLA GROUP   Annual Report 2009
                                                                                                         Reviews by the Group Directors

Corporate segment’s profitability improved

Profitability of the corporate segment improved in 2009, and
customer satisfaction and activity were at a good level.

The increase in premium income from
schemes for the management of personnel
insurance exceeded the expectations.
Lower payrolls in statutory personal insur­
ance and a decrease in investments made
by companies contracted sales volume in
the corporate segment in 2009.
     We improved the profitability of the
corporate segment by checking our pricing
policy and risk selection. Claims incurred
were lower than before, because there
                                                   Antti Calonius                                Jari Sundström
were fewer losses to be covered. Our
                                                   Group Director
investment performance was good.                                                                 Antti Calonius, Group Director, will retire in
                                                   Services for corporate customers, major       summer 2010. His successor Jari Sundström,
     The general economic situation was
                                                   customers and organisations                   Master of Laws, started on 1 January 2010.
reflected in premium income in the corpo­
rate segment through lower payrolls in stat­
utory personal insurance and a decrease
in investments made by companies.                     In 2010 we will launch a renewed,          personnel of our corporate customers.
     General customer satisfaction was good        more comprehensible business insur­           They help companies to recruit compe­
in the corporate segment. Customer reten­          ance scheme that provides cover for all       tent, committed employees. We want to
tion was excellent among major customers,          assets and operations. The pricing of         help our customers to extend the careers
but we fell short of the target for small and      business insurance will be renewed to         of their employees.
medium­sized customers. Our customers              match the customer’s risk level. This way
gave an excellent rating on the efficiency         we are aiming for increased fairness: by      Focus on growth and profitability
of our processes, and our activity was good        reducing their risks, our customers can get   in 2010
according to the customers.                        their business insurance at a lower price     In 2010 we will focus on ensuring the
     The combined ratio before the unwinding       than before. We also make full use of the     growth and profitability of the corporate
of discount, a key measure of profitability,       customer service descriptions we have         segment. There are many growth oppor­
improved considerably on the previous year.        drafted based on the company’s size and       tunities in personal insurance, and we
Growth of comprehensive service accounts           industry.                                     performed well in this area in 2009. We
fell clearly short of the target.                                                                feel that it is important for companies to
     Premium income from personnel solu­           Personal insurance promotes                   insure their personnel and take care of
tions exceeded the expectations, thanks            the personnel’s well­being at work            their employees’ well­being and coping at
to new customers. As regards property              Our operations are based on the unique­       work. Therefore, we are particularly inter­
and business insurance, premium income             ness factor in Tapiola’s strategy: respon­    ested in corporate customers who feel
did not develop quite as expected. Fund            sibility to customers. We want to provide     responsible for their personnel.
capital and deposits developed very favour­        our customers with products, services and         We are experts in risk management,
ably, but we fell slightly short of our targets.   solutions that promote their business. We     and we are glad to help our customers
                                                   focus on products and services for the        to reduce their risks.
Business insurance to be renewed
in 2010
The uncertain economic situation makes
the outlook for 2010 challenging. Our                 Pioneer in service development
development projects support the growth               The corporate segment wants to be a pioneer in the development of products
of corporate segment and choosing of                  and services for companies. Corporate segment customers account for 65 per cent
customers. We will continue to develop                of premium income in Tapiola insurance companies. More than EUR 500 million
our online services, and we encourage our             of investments in the funds managed by Tapiola Asset Management come from
customers to make efficient use of them.              corporate customers.

                                                                                                     Annual Report 2009 TAPIOLA GROUP             23
Financial review
All of Tapiola’s insurance and financial companies are based on mutuality.
The customers own the mutual insurance companies, which in turn own
the other companies within the Group. Since there are no outside investors,
Tapiola’s profits can be used to develop customer services and benefits.

Tapiola General Mutual Insurance                       across Finland. The services provided                     it engages in real estate and premises
Company’s (Tapiola General) line of busi-              by Tapiola Bank include various accounts                  rental and marketing, real estate rating
ness covers all types of voluntary and                 and cards (no handling of cash), as well                  and broking as well as construction,
statutory non-life insurance. Tapiola                  as advice in matters relating to loans and                maintenance, development, purchase
General includes Tapiola Bank Group;                   investments. Tapiola Bank is a share-                     and sales services.
Alma Insurance Company Ltd, which                      holder in Ab Compass Card Oy Ltd.                             Eläke-Tapiola is the third largest
manages the Group’s cancelled rein-                    Tapiola Bank is owned by the mutual                       provider of earnings-related pension
surance treaties; and Tapiola Data Ltd,                insurance companies of Tapiola Group,                     insurance in Finland. Tapiola Pension
which provides IT services.                            and through this ownership it is owned                    takes care of both statutory employee
   Tapiola Mutual Life Assurance                       by Tapiola Group’s policyholders.                         pension and self-employed persons'
Company (Tapiola Life) offers life insur-                  As a subsidiary of Tapiola Bank Ltd.,                 pension and participates in the devel-
ance products for private individuals                  Tapiola Asset Management Ltd. belongs                     opment of the Finnish pension system.
and companies: personal and risk insur-                to Tapiola General Group. Tapiola Asset                   Tapiola Pension provides statutory
ance and voluntary pension insurance.                  Management engages in mutual fund                         employee pension cover for nearly
Tapiola Corporate Life Insurance Ltd.                  and asset management operations and                       50,000 entrepreneurs and more than
merged with its parent company Tapiola                 provides investment advice.                               220,000 employees. It pays pension to
Mutual Life Assurance Company on 31                        Tapiola Real Estate Ltd. engages in                   more than 114,000 pensioners. In addi-
December 2009.                                         management of private equity funds and                    tion to management of insurance cover
   Tapiola Bank Ltd. is a modern bank                  provides related advice and consulting.                   and responsible investment of pension
that provides services primarily for private           The company provides investment and                       funds, Tapiola Pension provides services
households, farmers and small compa-                   financial advice as well as consultancy                   relating to well-being at work, rehabilita-
nies. The services are available online                in real estate business. Furthermore,                     tion and corporate funding.
and by telephone, as well as at offices

                                                                GROUP ORGANISATION
                                      HR Services       The chairman of the Boards of Directors (Tapiola         Tapiola General
                                  Sirpa Kaisanlahti                 General, Tapiola Life)                       Juha-Pekka Halmeenmäki, MD
                                           Director                Asmo Kalpala, President                       Jukka Kinnunen, DMD

                               Financial Services        The group’s         The group’s          The group’s
                                Markku Paakkanen           services          services for         services for   Tapiola Life
                   Director, deputy Board member          for private      corporate cus-           banking,     Minna Kohmo, MD
                                                         households        tomers, major          savings and    Janne Pesonen, DMD
                   Data Administration Services                            customers and          investment
                                     Esa Viitamäki,    Arto Jurttila        organisations          customers
                                           Director    Member of the                                             Tapiola Pension
                                                       BOD,               Antti Calonius        Jari Saine       Satu Huber, MD
                             Investment Services       Group Director     Member of the         Member of the    Keijo Kouvonen, DMD
                 Jari Eklund, Director, deputy Board                      BOD,                  BOD,
                                            member                        Group Director        Group Director
                                                       and Customer
                        Hanna Hiidenpalo, Director                                                               Tapiola Bank Ltd.
                                                       Relations          Jari Sundström
                                  (Tapiola Pension)                                                              Jari Saine, Chairman of the BOD
                                                       Services           Deputy member
                                                                                                                 Harri Lauslahti, MD
                                 Tapiola Data Ltd                         of the BOD,
                Esa Viitamäki, Chairman of the BOD                        Group Director
                                  Juha Suutala, MD                                                               Tapiola Asset Management Ltd.
                                                       Services           Major Clients
                                                                                                                 Jari Saine, Chairman of the BOD
                                                                          Services, Foreign
                                    Legal Services     Corporate                                                 Tom Liljeström, MD
                                                                          Operations and
                                 Jaakko Gummerus       Communications
                                                                                                                 Tapiola Real Estate Ltd.
                              Public Relations               Regions, Telephone and Online Services              Jari Eklund, Chairman of the BOD
                     and Supervision of Interest                        Ann Wahlroos-Jaakkola                    Vesa Immonen, MD
                           Anu Pylkkänen, Director                            Director

24    TAPIOLA GROUP      Annual Report 2009
                                                                                                                                                                        Financial review

Tapiola General
Tapiola General’s premium income outperformed the industry,
growing by 4.0 per cent to EUR 675.1 million.
Tapiola General Mutual Insurance                            unwinding of discount expenses of non-                                            was 7.2 per cent (-4.6%). Net return on
Company reported operating profit of EUR                    life insurance operations was 102.5 per                                           investment was good.
84.8 million for non-life insurance operat-                 cent (109.3%). If customer bonuses,                                                   The solvency capital of the parent
ions in 2009, representing a year-on-year                   including discounts, were eliminated,                                             company, Tapiola General, rose to EUR
increase of some EUR 137.8 million.                         the combined ratio before unwinding                                               1,317.0 million (EUR 1,174.5 million). The
   Tapiola General’s premium income                         of discount expense would have been                                               solvency ratio (solvency capital in relation
outperformed the industry, growing by 4.0                   94.5 per cent (100.8%). The ratio indi-                                           to premiums earned) rose to 203.6 per
per cent to EUR 675.1 million (EUR 648.9                    cates the good efficiency of the mutual                                           cent (189.2%). The company’s solvency
million). The estimated growth of the                       company for the customers: Tapiola’s                                              level is excellent.
industry was two per cent. The company’s                    claims and operating expenses are higher                                              The overall value of the benefits
direct business premium income increased                    than the total of insurance contributions                                         given to Tapiola General Group’s owner-
by 3.9 per cent to EUR 629,5 million                        collected, which are reduced somewhat                                             customers amounted to EUR 82.5 million
(EUR 606.1 million). The company’s overall                  by the discounts paid to the customers                                            (EUR 81.0 million), including customer
result increased by EUR 344.3 million to                    of the mutual company.                                                            bonuses, loyalty discounts, service bene-
EUR 149.1 million (EUR -195.2 million).                         The return on capital employed at                                             fits and discounts based on co-operation
   The combined ratio excluding the                         current value achieved by Tapiola General                                         agreements.

Key figures
                                                                         2009                     2008                                2007
Company size
  Premiums written, EUR m                                                675.1                    648.9                               628.7
    Change in premiums written, %                                          4.0                      3.2                                 0.9
Net investment income at current value, %                                  7.2                     -4.6                                 4.9
Claims development
  Loss ratio excl. unwinding of discount expense, %                        77.0                     83.8                               76.7
Efficiency of operations
  Expense ratio, %                                                        25.7                       25.7                              24.5
Profit development                                                                                                                               Juha-Pekka Halmeenmäki
  Combined ratio excl. unwinding of discount                                                                                                     Managing Director
  expense, %                                                             102.7                 109.5                                  101.2
  Operating profit/loss, EUR m                                            83.0                 -52.8                                  144.7
  Overall result, EUR m                                                  149.1                -195.2                                  100.5      Solvency and competence
Solvency                                                                                                                                         backed up the success
                                                                                                                                                 Improvement of the combined ratio (a key
  Solvency margin, EUR m                                                 759.8               650.2                               834.1
                                                                                                                                                 measure of profitability) is our strategic
  Minimum solvency margin                                                120.4               120.2                               116.3           goal for 2010–2012. We aim to outper-
  Solvency margin                                                           6.3                 5.4                                7.2           form the market and improve our efficiency.
  Solvency capital, EUR m                                               1,317.0             1,174.5                            1,368.5           We will develop our pricing to correlate
  Solvency ratio, %                                                      203.6               189.2                               227.8           with the risks, and we will continue the
                                                                                                                                                 customer and risk selection work initiated
                                                                                                                                                 in the previous strategy period. Because
                       Allocation development                                      Overall return on                                             of the general economic situation, we are
 %                                                                       %     the investment portfolio                                          prepared for lower premium income and
100                                                                      15
                                                                                                                                                 investment income throughout the strategy

                                                                                          Real-estate investments

                                                                                          Shares and holdings
 75                                                                      10                                                                         In non-life insurance, the competition

                                                                                          Other debt securities and deposits                     is increasingly tough and bank-centred,


                                                                                                                                                 because insurance policies are being
 50                                                                       5               Bonds
                                                                                                                                                 sold together with banking products. Our
                                                                                                                                                 success is based on the competitiveness


 25                                                                       0                                                                      resulting from our strong solvency, as
                                                                                                                                                 well as our expertise in the prevention
                                                                                                                                                 of damage and in claims settlement.
  0                                                                       -5
      2002    2003     2004     2005        2006   2007   2008   2009          2005               2007                   2009
                                                                                         2006                2008                   5 yr
       Real-estate investments
       Shares and holdings
       Other debt securities and deposits

                                                                                                                                                 Annual Report 2009 TAPIOLA GROUP        25
Financial review

Tapiola Life
Tapiola Life Group’s premium income increased by 13.7 per cent
to EUR 233.1 million (EUR 205.0 million).
The operating profit of Tapiola Mutual            income changed by approximately -0.2                        company at year-end, was 6.8 per cent
Life Assurance Company was EUR 66.6               per cent. Tapiola Life did not grant any                    (-1.2%). The Group’s technical provisions
million. It increased by EUR 49.7 million         unit-linked capital redemption contracts                    amounted to EUR 2.7 billion (EUR 2.6
year-on-year.                                     in 2009.                                                    billion).
    Tapiola Life Group’s primary insur-               The Group's overall result increased by                     The Group’s expense ratio in propor-
ance income developed favourably to               EUR 214.4 million to EUR 121.6 million.                     tion to total expense loadings was 127.2
EUR 233.1 million, up 13.7% year-                 The change in the current and book                          per cent (120.6%). An income enhance-
on-year. The Group’s market share of              values improved the overall result by EUR                   ment programme is currently ongoing in
premiums fell to 7.6 per cent (7.9%).             55.0 million (EUR -109.7 million). The                      the Tapiola Group.
The total premium income in the sector            change in the difference between current                        Tapiola Life's and Tapiola Corporate
increased by 17.2 per cent. New income            and book values shows that 2009 was a                       Life’s customer bonuses amounted to
was brought in by growth of the capital           year of recovery for investment activities.                 EUR 9.8 million (EUR 9.7 million).
redemption market as an asset manage-                 The Group’s solvency ratio rose to 17.3                     Tapiola Corporate Life merged with
ment solution. Without this effect, the           per cent (14.8%).                                           Tapiola Mutual Life Assurance Company
                                                      The return on capital employed at                       on 31 December 2009. The merger
                                                  current value achieved by Tapiola Life                      improves Tapiola Life’s financial perform-
                                                  in its investment operations was 7.0                        ance and creates a good basis for the
                                                  per cent (-1.1%). The corresponding                         development of services for corporate
                                                  return achieved by the subsidiary Tapiola                   and private customers in the continuously
                                                  Corporate Life, merged with its parent                      challenging financial situation.

                                                  Key figures
                                                                                                                           2009                       2008                           2007
                                                  Group’s total
                                                    Premiums written, EUR m                                                233.1                      205.0                          202.4
Minna Kohmo
                                                      Change in premiums written, %                                         13.7                         1.3                           1.6
Managing Director
                                                  Net investment income at current value, %                                  7.0                        -1.2                           3.9
                                                  Efficiency of operations
Provider of supplementary social                    Expense ratio, % of total expense loadings                             127.2                      120.6                          110.7
security                                          Profit development
We believe that we have excellent opportuni-        Operating profit, EUR m                                                 66.6                       16.9                          115.8
ties to increase our offering of risk insurance     Overall result, EUR m                                                  121.6                      -92.8                           19.9
services and pension insurance to corporate
and private customers. We are expecting a
significant increase in volumes in risk insur-      Solvency margin, EUR m                                                338.4                       276.9                          301.7
ance for corporate and private customers,           Minimum solvency margin, EUR m                                        114.8                       109.7                          110.2
and we believe that we will strengthen              Solvency margin                                                         2.9                         2.5                            2.7
our role as a provider of insurance savings         Solvency capital, EUR m                                               404.0                       336.0                          354.3
   The post-financial-crisis world is getting
                                                    Solvency capital, % of technical provisions                            17.3                        14.8                           15.4
reorganised, and new needs will arise.
Preparing for the aging of employees,                                    Allocation development                                     Overall return on
extending careers and supporting individuals                                                                                    the investment portfolio
to remain at work will offer new business           %                                                                     %
opportunities for us.                             100                                                                     15
                                                                                                                                      Real-estate investments

   According to the strategy, our goal is to
                                                                                                                                  8.7 %

strengthen our role as a provider of supple-       75                                                                     10
                                                                                                                                      Shares and holdings
                                                                                                                                                                             7.0 %

mentary social security. We want to succeed
                                                                                                                                              6.2 %

                                                                                                                                                                                     5.0 %

in the new pension savings market, secure
                                                                                                                                      Other debt securities and deposits
                                                                                                                                                        3.9 %

benefits for current pension savers and            50                                                                      5          Bonds

respond to the challenges presented by the
                                                                                                                                                                    -1.2 %

aging of the population. An important goal                                                                                            Loans

                                                   25                                                                      0
is to modernise the image of the mutual
company by developing new solutions for
our customers’ benefit.                             0                                                                      -5
                                                        2002    2003     2004     2005        2006   2007   2008   2009         2005                  2007          2009
                                                                                                                                          2006                  2008 5 yr average
                                                         Real-estate investments
                                                         Shares and holdings
                                                         Other debt securities and deposits

26     TAPIOLA GROUP      Annual Report 2009
                                                                                                                                   Financial review

Tapiola Bank Ltd.
Tapiola Bank’s result for the financial year rose to EUR 1.7 million.

Tapiola Bank’s result for the financial year   (EUR 1,190.0 million). Demand for
rose to EUR 1.7 million (EUR 1.6 million).     housing loans was high, and growth of the
The number of bank customers increased         credit portfolio outperformed the sector’s
to 184,400 in 2009 (159,400). The bank’s       average growth.
credits and fund-raising from customers            The bank’s interest margin was EUR
also grew.                                     13.0 million (EUR 12.0 million). Solvency
   The bank’s credit portfolio grew by         ratio remained strong and at the end of the
EUR 183.1 million to EUR 1,156.1 million       financial year it was 16.3 per cent (18.7
(EUR 973 million) and fund-raising             per cent).
from asset management customers by                 Tapiola Bank’s market share of deposits
EUR 81.8 million to EUR 1,271.8 million        was 1.2 per cent (1.1%).
                                                                                                       Harri Lauslahti
                                                                                                       Managing Director
Key figures
                                                              2009              2008          2007
Receivables from credit institutions, EUR m                    57.9             265.7         187.1    Owner-customers take part
Receivables from the public and public corporations,                                                   in the development of products
EUR m                                                       1,154.6          971.6            679.6    In the 2010–2012 strategy period, we
Liabilities to credit institutions, EUR m                       0.1            0.2               0.1   will give our owner-customers and other
Liabilities to the public and public corporations, EUR m    1,233.7        1,190.0            840.0    stakeholders more opportunities to take
Capital and reserves and minority interest, EUR m              74.4           70.5             38.4    part in the development of our operat-
                                                                                                       ions. The bank’s entire operating model,
Balance sheet total, EUR m                                  1,394.6        1,312.6            924.6    the Kotimatka real estate business service,
Contingent liabilities, EUR m                                  67.8           36.0             24.5    banking services for small businesses and
Interest margin, EUR m                                         13.0           12.0               8.1   the Tapiola Private asset management
Turnover, EUR m                                                55.8           73.4             42.9    model were developed based on customers’
Operating profit/loss, EUR million                              1.7            1.6              -2.1   wishes.
                                                                                                          We will improve our expertise in the
  of turnover, %                                                3.1            2.2             -4.9    prediction and management of risks and
Return on equity (ROE), %                                       2.4            2.9             -6.1    encourage customers to make responsible
Return on assets (ROA), %                                       0.1            0.1             -0.3    choices.
Equity ratio, %                                                 5.3            5.4               4.2      In 2010, Tapiola Bank will continue to
Cost/return ratio                                               0.9            0.9               1.1   implement its strategy by actively offering
                                                                                                       banking services to the Group’s insurance
Solvency (Basel II)                                                                                    customers. Banking services are the spear-
Primary own funds, total, EUR m                                   69.2           69.4          38.1    head of customer acquisition, particularly
Secondary own funds, total, EUR m                                 22.3           20.3          18.9    in growth centres. We will start offering
Minimum requirement for own funds, EUR m                          44.9           38.4          26.4    comprehensive banking services for farms
Solvency ratio primary own funds, %                               12.3           14.5          11.5    and small companies with 1–4 employees.
                                                                                                          We aim for growth without jeopardising
Solvency ratio, %                                                 16.3           18.7          17.3    profitability.

               Customer base                               Deposits and credits                                       Solvency
     1,000 persons                                 EUR m                                                  %
     200                                           1,600                                                 20

     150                                           1,200                                                 15

     100                                            800                                                  10

      50                                            400                                                   5

       0                                              0                                                   0
           2005          2007          2009                2005          2007          2009                   2005          2007          2009
                  2006          2008                              2006          2008                                 2006          2008
               Other customers                               Credit capital                                      Solvency-TIER I, %
               Account customers                             Deposit capital                                     Solvency, %

                                                                                                       Annual Report 2009 TAPIOLA GROUP          27
Financial review

Tapiola Asset Management Ltd.
The number of unit holders increased by more than 30 per cent.

Tapiola Asset Management's operating
profit increased to EUR 0.5 million (EUR        Uncertain economy creates
-0.2 million). The number of unit holders       opportunities
in funds managed by Tapiola Asset               The operating environment is character-
Management increased by about 11,000            ised by uncertainty of the sustainability
to nearly 45,000 unit holders in 26             of economic growth. In a situation like
different funds.                                this, it is natural for us to develop an
                                                investment vision of our own, based on
    The fund capital in the mutual funds
                                                our own company analysis and economic
managed by Tapiola Asset Management             research. This vision may differ signific-
increased from EUR 1,026.0 million to           antly from the public opinion. We find this
EUR 1,594.2 million in 2009. Major part         useful, because our customers feel that
of the fund capital growth came from            our independent research activities give
                                                them added value.                                  Tom Liljeström
subscription issues. The company's                                                                 Managing Director
                                                   If the government is vigorously trying
market share of the mutual funds regis-         to cover the budget deficit, the amount
tered in Finland increased to 2.9 per cent      of money to be invested decreases in
(2.5%) at the end of the year.                  the market. Nevertheless, we think it is
    Investments by corporate and commu-         possible that the saving rate will increase
                                                in Finland, which will lead to an expan-           growth, because in an uncertain economy
nity customers grew significantly in 2009.
                                                sion of the savings market. In 2010,               customers are increasingly willing to use
Investments were made fairly evenly in          we have the opportunity for significant            the services of asset managers.
fixed-income, equity and balanced funds,
as well as in discretionary asset manage-
    The good investment year was also        Key figures
reflected in the positive development of
the return on customer portfolios and                                                                              2009           2008        2007
mutual funds under the management            Turnover, EUR m                                                        12.0           10.2         8.1
of Tapiola Asset Management Ltd. The         Cost/return ratio                                                       1.0            1.0         0.9
performance of the mutual funds was          Operating profit, EUR m                                                 0.5           -0.2         0.5
outstanding, both in absolute terms and      Operating margin, % of turnover                                         4.5           -2.3         5.7
in relation to risks.                        Return on equity (ROE), %                                               6.8           -3.4         5.7
                                             Return on assets, %                                                     5.4           -2.6         4.4
                                             Equity ratio, %                                                        77.8           81.4        73.4
                                             Solvency (Basel II), %                                                 37.6           52.7        40.7

                                                   Distribution                                            Distribution of fund
                                                   of turnover                                           capitals in mutual funds
                                                                                                         between fund categories

                                             Turnover EUR 12.0 m                                         Fund capital EUR 1.6 billion

                                               Income from mutual fund operations EUR 6.2 m, 52.1%          Equity funds 34.3% (31%)
                                               Income from asset management services EUR 5.5 m, 46.2%       Short-term funds 18.7% (27%)
                                               Return on investments EUR 0.1 m, 1.0%                        Other fixed-income funds 31.6% (26%)
                                               Other income EUR 0.1 m, 0.7%                                 Balanced funds 15.4% (16%)

28    TAPIOLA GROUP   Annual Report 2009
                                                                                                                                   Financial review

Tapiola Real Estate Ltd.
The turnover of Tapiola Real Estate increased to EUR 7.5 million.

The turnover of Tapiola Real Estate
increased by 12.7 per cent to EUR 7.5                Importance of environmental
million (EUR 6.7 million). The operating             responsibility
profit was EUR 0.7 million (EUR 0.5                  Ensuring profitable growth is one of Tapiola
million).                                            Real Estate’s ways of showing financial
   For Tapiola Real Estate, 2009 was fairly          responsibility for its owners. Our company
                                                     has been profitable throughout its history.
quiet on the real estate market due to the
                                                     This provides a good basis for the develop-
economic recession and financial crisis.             ment of our services in the future.
However, the real estate assets managed by              Good profitability can be ensured by swift
the company grew by EUR 139.6 million to             response to changes in the market, system-
EUR 2,309.1 million (EUR 2,169.5 million)            atic growth strategy, efficient management
                                                     and regular evaluation of risks.
and the leasable surface by 131,000 square                                                           Vesa Immonen
                                                        One of our important strategic themes
metres to 1.1 million square metres (1.0             is to strengthen our profile as an environ-     Managing Director
million square metres).                              mentally responsible corporate citizen. Our
   The company's equity ratio rose to 42.5           investment process includes evaluation of          Young as a company despite its long
per cent (27.8%) at the end of the year.             environmental impacts of real estate for the    history, Tapiola Real Estate is well-posi-
                                                     entire life cycle. Furthermore, we actively     tioned in the market. This is made possible
   During the financial year, the company
                                                     develop solutions that help our customers       by customer relations that are based on deep
carried out real estate investments totalling        (investors and tenants) to improve their        trust, partners who understand us and our
EUR 268.0 million (EUR 360.2 million) and            understanding of environmental impacts,         professionally competent, highly motivated
real estate sales totalling EUR 42.7 million         thus promoting eco-efficiency.                  personnel.
(EUR 266.0 million) for its customers.
   The company acquired new investors and
investments for the funds it manages, which       Key figures
resulted in the growth of assets in real estate                                                                      2009           2008       2007
funds to EUR 223.7 million (EUR 148.6             Turnover, EUR m                                                      7.5            6.7        5.5
million).                                         Operating profit, EUR m                                              0.7            0.5        0.1
                                                  Operating profit, %                                                  9.7            7.0        1.1
                                                  Cost/return ratio                                                    0.9            0.9        1.0
                                                  Return on equity (ROE), %                                           61.4           82.3       36.6
                                                  Return on investment, %                                             38.5           43.2       19.7
                                                  Equity ratio, %                                                     42.5           27.8       13.4
                                                  Quick ratio                                                          1.7            1.2        0.5

Real estate allocation                            Real estate allocation                             Real estate allocation
   by customer*)                                        by area*)                                     by property type*)

     Tapiola General 22% (22%)                         Helsinki 31% (29%)                                 Office 45% (44%)
     Tapiola Life 17% (14%)                            Espoo 23% (22%)                                    Commercial 20% (20%)
     Tapiola Pension 41% (42%)                         Vantaa 15% (15%)                                   Residential 9% (9%)
     Tapiola KR I Ky 5% (5%)                           Turku 5% (5%)                                      Indirect 7% (10%)
     Tapiola KR III Ky 4% (2%)                         Tampere 4% (4%)                                    Logistics 8% (6%)
     Tapiola KR IV Ky 1% (0%)                          Oulu 4% (4%)                                       Hotel 7% (7%)
     Carlyle 10% (10%)                                 Riihimäki 2% (0%)                                  Industry 3 % (2%)
  *By market value (EUR 2,309 million)                 Kuopio 2% (2%)                                     Other 1% (2%)
                                                       Epäsuorat 7% (10%)
                                                                                                        *By market value (EUR 2,309 million)
                                                       Muut 7% (7%)
                                                    *By market value (EUR 2,309 million)

                                                                                                         Annual Report 2009 TAPIOLA GROUP        29
Financial review

Tapiola Pension
Tapiola Pension's return on capital employed reached an all-time high. The
return on investments at current value was 13.5 per cent (-8.3%).
The return on Tapiola Pension’s invest-         Key figures
ment portfolio rose to a record-high level in
2009. The return on investments at current                                                                                              2009           2008           2007
value was 13.5 per cent (-8.3%).                Company size
    Net return on investment at current value     Premiums written, EUR m                                                           1,388.0 1,403.0                 1,273.7
rose to EUR 1,013.0 million (EUR -667.1             Change in premiums written, %                                                        -1.1   10.1                     6.9
million). Tapiola Pension augmented its           Pensions paid and other claims 1)                                                 1,261.5 1,167.4                 1,057.7
investments in companies considerably in          Technical provisions, EUR m                                                        7,788.1 7,236.1                 7,197.7
2009. Investments in companies (equities          TyEL payroll, EUR m                                                                5,647.8 5,736.3                5,367.7
and bonds) accounted for nearly 50 per            YEL payroll, EUR m                                                                   860.9   826.6                  790.3
cent of all investments. Return on equity         Number of pensioners                                                              114,873 110,732                 107,471
was 39.4 per cent, and return on fixed-         Net investment income at current value, EUR m                                        1,013.0  -667.1                  310.3
income investments was 8.1 per cent.              Net return on capital employed, %                                                     13.5    -8.3                     4.1
    The overall result of Tapiola Pension,      Efficiency of operations
comprising the result of the insurance busi-      Operating expenses, % of loading profit                                                84.2            81.8          81.1
ness, net return on investment and loading      Profit development
profit, totalled EUR 583.1 million for 2009.      Overall result, EUR m                                                                583.1         -612.2           -78.2
It increased by EUR 1,195.3 million year-       Solvency
on-year.                                          Solvency margin, EUR m                                                            1,645.7         1,043.9         1,406.1
    Tapiola Pension's premium income fell by        % of technical provisions 2)                                                       23.7            16.2            21.3
1.1 per cent to EUR 1,388.0 million (EUR            without the temporary changes in legislation                                       18.8            11.5
1,403.0 million). The reason for this was the       in relation to solvency limit                                                       3.0             2.9             1.8
reduction in payrolls, due to the economic          without the temporary changes in legislation                                        2.4             2.0
recession.                                          Equalisation provision, EUR m                                                     284.2           303.0           295.0
    Tapiola Pension’s solvency ratio rose           Pension assets, EUR m 3)                                                        8,555.1         7,479.3         7,976.9
to 23.7 per cent (16.2%). The company’s             Transfer to bonuses, % of TyEL payroll                                              0.3             0.2             0.4
solvency margin was 3.0 times the solvency      1)
                                                   Claims paid in the profit and loss account excluding claims handling and working capacity maintenance expenses
limit (2.9). Without the temporary changes      2)
                                                   Ratio as per centage of technical provisions used in calculating the solvency limit
                                                   Technical provisions + valuation gains/losses
in legislation, the corresponding figures
would be 18.8 per cent (11.5%) and 2.4
times (2.0).                                    (26,288) policies, and 221,504 (210,626)                            Customer bonuses totalled EUR 18.6
    At the end of 2009, the number of           people were insured under them. The                              million (EUR 12.7 million), or 0.33 per
Tapiola Pension’s policies came to 26,791       number of YEL policies was 48,253                                cent (0.22%) of the TyEL payroll.

                                                Customers’ benefit comes first                                   In favour of transparency
                                                In 2009, we increased our online services                        Tapiola Pension will continue to promote trans-
                                                in accordance with the customers’ wishes.                        parency in the field of earnings-related pension
                                                   In the 2010–2012 strategy period,                             insurance. For example, it is important that
                                                customers’ benefit will be emphasised even                       workplace well-being activities and investments
                                                more strongly than before. We will develop our                   in them are efficient, measurable and trans-
                                                services to better match our customers’ needs.                   parent.
                                                In this work we will make use of the results of                     Investment operations have a significant role
                                                Tapiola’s corporate image and customer satis-                    in the management of pension funds. The finan-
                                                faction surveys. Our customers have also taken                   cial crisis in 2008 left a deep dent in pension
                                                part in the development of Tapiola Pension’s                     funds. Securing of pension funds is an essen-
                                                new information systems by making suggestions                    tial element of solvency management. Wise
Satu Huber                                      on the content of the system.                                    and transparent solvency management secures
Managing Director                                                                                                pension funds and creates a basis for the
                                                                                                                 productivity of investments.

30    TAPIOLA GROUP    Annual Report 2009
                                                                                                                                Financial review

                       Allocation development                       Overall return on
                                                                the investment portfolio
 %                                                        %
100                                                       20
                                                          Real estate investments

75                                                        Shares and holdings


                                                          Other debt securities and deposits



 0                                                        -10
      2005           2006            2007   2008   2009          2005             2007             2009
                                                                          2006            2008                5 yr
       Real estate investments
       Shares and holdings
       Other debt securities and deposits

                                                                                                            Annual Report 2009 TAPIOLA GROUP   31
Corporate responsibility
Tapiola Group wants to be a pioneer in corporate responsibility in the Finnish
insurance and financial industry. Corporate responsibility has been recorded
as a central policy in Tapiola’s strategy.
“Making responsibility an everyday issue”                    Responsible conduct is usually                        Financial operating environment
is one of Tapiola’s values, and it charac-               assessed from economic, social and                        for responsibility
terises the way responsibility is imple-                 environmental aspects. Tapiola views its                  The most important challenges faced
mented in the company. Moreover, mutu-                   corporate responsibility in a fourfold table              by society in the next few years include
ality as the company form places special                 that includes the company’s responsi-                     the aging of population, caring for the
requirements on openness and respon-                     bility for the customers, responsibility                  elderly, employment rate and the difficult
sibility in Tapiola Group; in a mutual                   for the personnel, responsibility for the                 economic situation, as well as holding
company, customers are also the owners.                  environment and responsibility to society.                back the climate change. These issues
In our industry, sense of responsibility                 In 2009, Tapiola initiated a corporate                    have also an effect on Tapiola's oper-
and taking responsibility have a particu-                responsibility project. Tapiola’s respon-                 ations and services.
larly important role.                                    sibility commitments were compiled in                         The strong solvency of Tapiola compa-
    In Tapiola Group, corporate social                   this project, and they form a basis for                   nies provides a basis for systematic
responsibility refers to Tapiola’s different             work in the entire organisation. Adher-                   development of the group, despite the
roles in society and Tapiola’s effects on                ence to these commitments is included                     economic uncertainty. Good perform-
its stakeholders. With the term corporate                in the operational plans, and meas-                       ance is based on profitable investments
responsibility we refer to those elements                ures to promote responsibility are part of                and growth of business volume. It is also
of responsibility that are associated with               Tapiola’s business operations. Further-                   affected by decreases in claims incurred,
Tapiola’s business operations. Respon-                   more, responsibility is a criterion for the               more efficient cost management by the
sibility is built on the Group’s shared                  management’s merit pay and payments                       companies and pricing that correlates
values. Tapiola initiated the work to define             made to Tapiola Group’s personnel fund.                   with risks.
its values in 1989. The principles of CSR                The unit reporting to the President is
were approved by Tapiola’s Board of                      responsible for the co-ordination of CSR
Directors in December 2002.                              at Tapiola.

Social distribution of income

                                                                                                2009                       2008                      2007
                                                                                             EUR m Share, %             EUR m Share, %            EUR m Share, %
Tapiola’s income
Income from insurance operations                                                           2,441.0          72.4 2,396.0             100.1      2,242.7          72.9
Reinsurers’ share of claims incurred                                                           9.3           0.3     30.5              1.3         16.2           0.5
Net investment income                                                                        878.1          26.1    -72.9             -3.0        809.8          26.3
Other income                                                                                  40.9           1.2     40.0              1.7          9.8           0.3
Total income                                                                               3,369.3         100.0 2,394.4             100.0      3,078.5         100.0

Distribution of income to stakeholders
Claims paid to customers                                                                   2,472.0          73.4 1,609.8              67.2      2,163.5          70.3
Reinsurers’ share                                                                             28.9           0.9     25.8              1.1         23.2           0.8
Salaries, wages, etc.                                                                        122.6           3.6    117.3              4.9        121.8           4.0
Other operating expenses = suppliers                                                         202.5           6.0   202.0               8.4        167.6           5.4
Society                                                                                      444.8          13.2   429.9              18.0        445.5          14.5
Tapiola Group                                                                                 98.5           2.9      9.6              0.4        157.0           5.1
Total distribution of income                                                               3,369.3         100.0 2,394.4             100.0      3,078.5         100.0

The social distribution of income describes which items comprise the total income in Tapiola’s insurance business and how they are distributed between the various
stakeholders. At the same time, it illustrates the impacts of Tapiola Group as a socially influential party. Tapiola has published a report on the social distribution of
income in its annual report since 1977. So far, such a practice has not been introduced in the banking sector.

32     TAPIOLA GROUP        Annual Report 2009
                                                          Corporate responsibility

Tapiola Pension, Tapiola Asset
Management and Tapiola Real Estate
have signed the United Nations’ (UN)
Principles for Responsible Investment.

                      Responsibility is
                      the leading idea
                      in Tapiola’s customer
                      service models.

                                              Annual Report 2009 TAPIOLA GROUP   33
Corporate responsibility

Customers’ needs                          Responsibility for customers
                                          Equality experienced by customers and
                                                                                       members elected from among the
                                                                                       Advisory Committees. This committee

and wishes are                            other stakeholders is promoted through
                                          products, services and customer satis-
                                                                                       assesses the performance of the Group
                                                                                       in matters relating to handling of

regularly studied                         faction. Corporate responsibility is the
                                          leading idea in Tapiola’s customer service
                                                                                       customer feedback, mutuality and
                                                                                       corporate responsibility, for example.
                                          models based on care and partner-
in various surveys,                       ship. Tapiola offers its customers review    Responsibility for Personnel
                                          of coverage services where customers         Finnish society and population structure
market research                           assess the adequacy of their insurance       have changed. This is clearly visible in
                                          coverage together with an expert. Corpo-     Tapiola’s customer base and personnel.
studies and panel                         rate customers are offered expert serv-      Tapiola continues to focus on improving
                                          ices in risk management. The finan-          its employer image and on working
discussions.                              cial effects of Tapiola’s operations         together. In the next few years, a good
                                          create various forms of added value for      employer image will be even more impor-
                                          customers and the communities in which       tant than today to ensure availability of
                                          Tapiola operates.                            professional staff as the babyboomers
                                              In investment operations, corporate      retire.
                                          responsibility has been a strong theme           Various incentive schemes will
                                          for many years. In 2008, Tapiola Pension     become increasingly important as
                                          signed the United Nations’ (UN) Prin-        companies are competing for good
                                          ciples for Responsible Investment, and       employees. Joint responsibility had an
                                          Tapiola Asset Management and Tapiola         important role in Tapiola’s employee
                                          Real Estate signed them at the beginning     well-being programme. The objective of
                                          of 2010. This means that the compa-          the programme is to help the personnel
                                          nies undertake to consider environmental     to cope at work and to improve their
                                          and social aspects and good corporate        productivity, while reducing absences
                                          governance in their investment oper-         due sickness and premature retirement.
                                          ations.                                          Tapiola offers its personnel many
                                              Feedback from customers is very          opportunities for development and
                                          important for the development of prod-       learning, from learning at work and inde-
                                          ucts and services. Customers’ needs          pendent studies to taking degrees and
                                          and wishes are regularly studied in          mentoring. Job rotation and scholar
                                          various surveys, market research studies     programmes are supported. Taking
                                          and panel discussions. The customers’        degrees on an independent study basis
                                          voice is also heard through the advisory     has a long history at Tapiola.
                                          committee system. Moreover, Tapiola
                                          has a Customer Committee with five

34   TAPIOLA GROUP   Annual Report 2009
                                                                                                             Corporate responsibility

Environmental responsibility                                                                     Tapiola also aims to promote the inter-
Responsible business includes respon-                                                        ests of insurance and financial industry
sibility for the environmental impacts                                                       based on customers’ benefit. The goal
of one’s own operations, as well as                                                          is to ensure equality of operations in
target-oriented efforts to reduce these                                                      the financing group based on mutuality.
impacts. In Tapiola, the management of                                                       Tapiola engages in networking in the
environmental matters is based on the                                                        fields of research (Geneva Association),
group’s values and strategy. Responsi-                                                       interest supervision (AMICE, ICMIF, CEA)
bility commitments to the environment                                                        and business (EURAPCO) to reinforce
guide the group’s environmental responsi-                                                    development of operations.
bility activity. Assuming personal respon-
sibility for collective issues is emphasised                                                 Corporate responsibility reporting
throughout the organisation, including                                                       Tapiola’s first report based on the Global
consideration of environmental aspects                                                       Reporting Initiative (GRI) standard was
in all operations.                                                                           published in 2003. The report for 2006
    Tapiola’s most significant environ-                                                      was Tapiola’s first full-length report
mental impacts result from energy                                                            in Finnish in accordance with the G3
consumption, construction work, travel-                                                      standard. It received a honorary mention
ling, waste, purchases and the use of                                                        in a national reporting competition as the
paper. Tapiola’s head office operations                                                      best report in the financial industry. The
have joined the Green Office Environ-          opportunity to personally experience          report for 2007 was evidently the first in
mental System of the World Wildlife Fund       that they benefit from social networks,       Finland to achieve application level A+.
WWF.                                           reciprocity and mutual interaction with       The CSR report complements the finan-
    Tapiola has invested particularly          Tapiola. Knowing the stakeholders and         cial reporting of the Tapiola Group with
strongly on the improvement of online          taking their expectations into account        regard to other effects.
systems. This has resulted in decreased        improve the company’s ability to operate          Responsibility commitments to
use of paper. In addition to online            in the long run, Tapiola wants to be          customers, personnel, environment and
systems, the reduction in the use of           known as an appreciated and reliable          society form the basis for improvement
paper is a result of electronic customer       company and partner.                          of corporate responsibility at Tapiola
communication, increased intra-group               Tapiola Group is committed to the         in the strategy period starting in 2010.
online communication and reduced               ICC Business Charter for Sustainable          Reporting is based on the fourfold table
volume of customer mailings and print-         Development. Tapiola engages in various       of responsibility commitments.
outs.                                          activities together with decision-makers,         Tapiola’s corporate responsibility
                                               industrial organisations and research and     report for 2009 discusses responsibility
Responsibility to society                      educational institutions. Tapiola publishes   and effects more extensively. The report
In accordance with the principles of CSR,      a biannual review on everyday financial       will be published in May 2010.
Tapiola’s stakeholders should have the         affairs on its website to promote under-
                                               standing of these matters.

                                                                                                Annual Report 2009 TAPIOLA GROUP     35
At the end of 2009, the number of employees with an employment relationship
with Tapiola Group totalled 3,002. The average age of employees was 40 years;
66 per cent were women and 34 per cent men.

The employees work in Tapiola offices        personnel many opportunities for devel-               Tapiola surveys its personnel’s well-
in five regions around Finland. In addi-     opment and learning, from learning at             being at work and job satisfaction on
tion, Tapiola has an extensive sales         work and independent studies to taking            an annual basis. According to the survey
network that comprises representatives,      degrees and mentoring. Nearly 200                 conducted in 2009, employees’ job
franchising entrepreneurs and customer       Tapiola employees take the insurance              satisfaction was good and the results
advisors hired by entrepreneurs for          examination each year.                            were at the same level compared with
their local service offices. This network        The economic recession forced                 other Finnish companies. Based on the
included nearly 700 people in 2009. The      Tapiola to cut personnel training costs           results, it can also be said that super-
representatives and franchising entrepre-    in 2009. Despite this, EUR 2 million were         visor performance at Tapiola is good. In
neurs from the local service offices take    invested in training. During the year,            the survey, Tapiola supervisors received
part in the marketing of Tapiola insur-      Tapiola renewed its manager and super-            better grades than supervisors on
ances and financial services on a full- or   visor training and supported the super-           average. Compared with the previous
part-time basis. They are independent        visors in their work by offering tailored         survey, job satisfaction was slightly
entrepreneurs, without an employment         training.                                         higher in 2009. This was the first time
relationship with Tapiola.                                                                     that Tapiola’s company culture was also
    Tapiola employees have many different    Improved job satisfaction                         surveyed. According to the participants
educational backgrounds, because             Personnel benefits were renewed in                in the survey, Tapiola is a responsible,
the range of jobs is so diverse. Tapiola     2009. In order to promote the person-             competent and reliable employer.
employs business administration experts,     nel’s well-being at work, in 2009 Tapiola
engineers, lawyers, mathematicians,          introduced a new personnel benefit by
doctors, humanists, technology and IT        taking out Care Coverage policies for all
experts, etc. In 2009, Tapiola employees     employees who have an employment
held about 300 different job titles.         relationship with Tapiola. The Care
                                             Coverage policy enables employees to
Manager and supervisor training              seek specialist treatment, which will make
was renewed                                  it possible for them to return to work
Each year, in order to ensure its profes-    sooner after an illness.
sional competence, Tapiola offers its

                                             Key figures
                                                                                                           2009        2008       2007
                                             Number of personnel*                                          3,002       3,153      3,007
                                             Men, %                                                           34          33         33
                                             Women, %                                                         66          67         67
                                             Training costs, EUR m                                            2.0         2.9        2.1
                                             Absences due to illness, %                                       4.5         4.4        4.4
                                             Employee well-being, average                                    8.3          8.4       8.2

                                             * The figures do not include long-term absences

36    TAPIOLA GROUP    Annual Report 2009

          Age distribution of personnel 31 Dec 2009*                                                        Development of                              Distribution of education                        Photo Emil Bobyrev

                                                                                                          the number of staff*                           of Tapiola personnel*
persons                                                                                        persons
600                                                                                            4,000

450                                                                                            3,000

300                                                                                            2,000

150                                                                                            1,000

  0                                                                                                 0
      **-19           25-29           35-39           45-49           55-59           65-**              2005          2007          2009
              20-24           30-34           40-44           50-54           60-64                             2006          2008
                                                                                                                                                         Lower secondary education 7%
        Men             Women            Total                                                                                                           Upper secondary education 32%
                                                                                                                                                         Lowest level of tertiary education 22%
                                                                                                                                                         Lower-degree level of tertiary education 17%
                                                                                                                                                         Higher-degree level of tertiary education 15%
                                                                                                                                                         Second stage of tertiary education 1%
                                                                                              * The figures do not include long-term absences            Education unknown 6%

                                                                                                                                                Annual Report 2009 TAPIOLA GROUP            37
Corporate Governance
Corporate Governance                                Guarantee shares in insurance compa-                 Under the Act on Employee Pension
The Tapiola Group companies adhere to           nies are owned by the other mutual insur-            Insurance Companies, a minimum of
good corporate governance, which is based       ance companies of the Group. All shares in           half of Tapiola Pension’s Supervisory
on the legislation concerning the financial     Tapiola Group’s joint-stock insurance and            Board members must be elected from
and insurance industry, the regulations and     financial companies, as well as all shares in        among persons proposed by the central
guidelines issued by the Financial Super-       the real estate company are owned by the             labour market organisations representing
visory Authority and, when applicable,          other companies of Tapiola Group.                    employers and employees. The number
Corporate Governance recommendations                As shareholders in the companies,                of representatives elected from among
currently in force.                             policyholders exercise their right of deci-          persons proposed by employers and
    Good corporate governance aims              sion at the Annual General Meetings. The             employees must be equal, 7 and 7.
particularly to ensure efficient governance     agendas include election of the members                  The term of a Supervisory Board
by owners and transparency of operat-           of the Supervisory Boards for each of                member is three years. In 2009, Tapiola
ions. In mutual insurance companies, the        Tapiola’s insurance companies, adoption of           General had 23 Supervisory Board
policyholders are also shareholders in the      the income statement and balance sheet,              members, Tapiola Life had 16, Tapiola
company. In Tapiola Mutual Pension Insur-       and granting of discharge from liability to          Corporate Life 16 and Tapiola Pension 25
ance Company, shareholders also include         the members of the governing bodies and              Supervisory Board members. Tapiola Corpo-
employees covered by the TyEL employee          the managing director. To ensure the deci-           rate Life merged with Tapiola Life at the end
pension insurance.                              sion-making power of policyholders, voting           of 2009 and, consequently, Tapiola Corpo-
    Thus, Tapiola Group’s owner base is         rights based on guarantee shares have been           rate Life’s Supervisory Board was terminated
very extensive. This is why the Supervisory     restricted in the Insurance Companies Act.           at the beginning of 2010. Tapiola Life's
Boards of the Group’ insurance companies                                                             Supervisory Board had 30 members at the
have substantial decision-making power          Supervisory Boards                                   beginning of 2010.
and supervising responsibility in the compa-    The Annual General Meeting elects the                    The Co-operation Committee formed
nies, compared with listed companies.           company’s Supervisory Board.                         by the Supervisory Boards of Tapiola
    Tapiola Group’s Co-operation Committee,         At Tapiola General and Tapiola Life, the         General and Tapiola Life assists the Super-
comprising the Chairmen and Deputy              election is based on proposals made by poli-         visory Boards, with the exception of Tapiola
Chairmen of the Supervisory Boards, assists     cyholders and the Co-operation Committee of          Pension, in the monitoring of Tapiola
the Supervisory Boards of Tapiola General       the Supervisory Boards. Tapiola Pension has          Group’s operations and prepares matters to
and Tapiola Life in their task. Furthermore,    an Electoral Committee in accordance with            be handled by the Supervisory Boards.
the Co-operation Committee acts as the          the Employee Pension Insurance Companies                 Tapiola Group’s joint-stock companies
supervisor                                      Act. The committee makes proposals to the            (Tapiola Bank, Tapiola Asset Management
of Tapiola Group’s President.                   Annual General Meeting for the election of           and Tapiola Real Estate) do not have Super-
                                                Supervisory Board members.                           visory Boards. The General Annual Meet-
Tapiola Group’s Corporate Governance                When electing the members of the                 ings appoint the members for the Boards
Tapiola Group’s corporate governance is         Supervisory Boards, it is desirable that the         of Directors in these companies. However,
based on mutuality. Tapiola General and         Boards’ compositions will correspond to the          one-third of Tapiola Asset Management’s
Tapiola Life are jointly owned by the policy-   structure of the company’s customer base,            Board members are elected at a meeting of
holders, the guarantee share owners and         reflecting both customer segmentation and            fund unit holders.
those insured in Tapiola Pension under the      the geographical breakdown of premiums
same policy as a group.                         written.

                                                 Tapiola Group’s corporate governance
                                                           (excluding Tapiola Pension)

                                                           Annual General Meetings

                                                               Supervisory Boards

                                                                                                Co-operation Committee of Supervisory Boards
                                                                                                              Audit Committee
                        Advisory Committees                    Boards of Directors                        Compensation Committee
                        Customer Committee
                                                      Banking,    Services      Services for
                                                      savings     for private   corporate
                                                      and invest- households    customers,
                                                      ment                      major cus-
                                                      services                  tomers and

                                                                            Investment Management
                                                Managing Directors                  Group

38    TAPIOLA GROUP     Annual Report 2009
                                                                                                                         Corporate Governance

Responsibilities of Supervisory Boards           makes a draft proposal for the selection of          Role of the Boards of Directors
Supervisory Boards shall                         Supervisory Board members by the Annual              The Boards of Directors are responsible for
•	 supervise	the	company’s	management            General Meeting. However, the chairman               corporate governance and appropriate organ-
   by the Board of Directors and the             and deputy chairman of each Supervi-                 isation of operations. The Boards of Directors
   Managing Director                             sory Board refrain from participating in the         are responsible for appropriate organisation
•	 give	a	statement	to	the	Annual	General		      member selection process of the Super-               of accounting and asset management. The
   Meeting on the financial statements and       visory Board that they represent.                    Board of Directors confirms the company’s
   the auditor’s report                             The Cooperation Committee of the                  strategic plan and operating principles, the
•	 decide	on	the	number	of	members	and		         Supervisory Boards is not a legal governing          annual operation plan and budget and super-
   deputy members in the Board of Directors      body nor does it have any power of deci-             vises their implementation. It also confirms
•	 elect	and	release	the	members,	deputy		       sion. All decisions are made by the Supervi-         the investment plan and risk management
                                                 sory Boards.                                         plan.
     members, chairman and vice chairman
                                                                                                          Development of services for owner-
     of the Board of Directors and decide
                                                 Customer Committee                                   customers, investment-related questions
     on the fees paid to the members and on
                                                 The Customer Committee replaced the                  and risk management are emphasised
     compensation of their travel expenses       Mutuality Committee in January 2010.                 in the work of Tapiola Group’s Boards
    In addition, the Supervisory Boards of       During its three-year term, its job is to            of Directors.
Tapiola General and Tapiola Life decide on       assess the realisation of one of Tapiola’s               The Board members of insurance
matters concerning considerable contrac-         mutuality elements each year.                        companies, with the exception of Tapiola
tion or expansion of operations or substan-                                                           Pension, are full-time members, employed
tial changes in the company organisation.        The mutuality elements specified                     by the Tapiola Group. The Boards of Tapiola
Supervisory Boards can also advise the           by Tapiola are the following:                        Bank and Tapiola Asset Management each
Board of Directors in matters that are far-      •	 paying	attention	to	customers’	wishes		           include one external member. The compa-
                                                     and feedback and including customers             ny’s President is the Chairman of the Board
reaching or of substantial importance.
                                                     in the development of Tapiola’s operations       of Directors in Tapiola General and Tapiola
    The Supervisory Boards normally meet
                                                 •	 adherence	to	the	customer	commit-	 	              Life.
three times per year. The Annual General
                                                     ments defined by Tapiola in all meetings             The Supervisory Board appoints the
Meeting decides on the fees paid to the
                                                     with customers                                   members of the Board of Directors. The
Supervisory Board and the compensation of
                                                 •	 responsibility	to	customers,	personnel,		         term of a Board member is three years.
travel expenses.
                                                     environment and society in accordance                Along with their Board duties, ordinary
                                                     with the responsibility commitments              members of the Boards of Tapiola General
Co-operation Committee
                                                     Tapiola has specified for itself.                and Life are responsible for the Group’s
The chairmen and deputy chairmen of the
Supervisory Boards of Tapiola General and            In its first year of operation, the              services to different customer groups:
Tapiola Life belong to the Co-operation          committee will evaluate how Tapiola pays             private households, corporate customers,
Committee of the Supervisory Boards, on          attention to the customers and listens to            major customers and organisations, as
which there is a regulation in the Articles of   their wishes and feedback.                           well as banking, savings and investment
Association of each of these companies.              The Customer Committee will have                 customers. The Managing Directors of the
    Supervisory Boards confirm the               access to all the material that is necessary         companies steer their companies in accord-
Coperation Committee’s rules of proce-           for the assessment. It will report its observa-      ance with the instructions and orders issued
dure. According to them, the Cooperation         tions and make proposals on improvements             by the Board of Directors.
Committee prepares matters to be handled         each year. The report will be discussed                  Half of the members in Tapiola Pension’s
at the meetings of the Supervisory Board         by Tapiola’s Board of Directors and the              Board of Directors represent labour market
and submits draft proposals to the Super-        Co-operation Committee.                              organisations. Tapiola Pension’s Board of
visory Boards. The Coperation Committee              The Customer Committee has a repre-              Directors has statutory committees for prep-
monitors the operations of the Board of          sentative from each of Tapiola’s five regions.       aration of audit matters and nomination and
Directors, President and Managing Direc-         The representatives have been elected from           compensation matters.
tors and presents reports to the Supervisory     the regional Advisory Committees.
Committee. The committee prepares and

                                                 Tapiola Pension’s corporate governance

                                                            Annual General Meeting

                                                               Supervisory Board

                                                                                                         Electoral Committee

                                                               Board of Directors
                        Advisory committees
                                                               Audit Committee
                                                          Nomination and Compensation

                                 Investment Management    Corporate customers, major
                                                                                              Managing Director
                                         Group            customers and organisations
                                                              Management Group

                                                                                                          Annual Report 2009 TAPIOLA GROUP      39
Corporate Governance

Co-operation Committee

   Antti Lemmetyinen                             Marita Ruohonen          Juha Marttila

                                                                               Jouko Virranniemi

                              Jouko Havunen                                                                         Marjut Nordström

                                       Term                                            Term                                         Term
Antti Lemmetyinen                 2008–2011   Juha Marttila                    2009–2012      Marita Ruohonen                  2009–2012
(Chairman)                                    PhD (Agr. & For.)                               Executive Director
Counsellor of Social Welfare,                 Chairman of the Central Union of Agricultural   Finnish Association for Mental Health
Chairman of the Board of Directors            Producers and Forest Owners (MTK)               Kirkkonummi
Diacor terveyspalvelut Oy                     Simo
Espoo                                                                                         Jouko Virranniemi                2009–2012
                                              Marjut Nordström               2009–2012        Teollisuusneuvos (Finnish honorary title)
Jouko Havunen                     2008–2011   Managing Director                               Pölkky Oy
(Vice Chairman)                               EL–kori Oy                                      Kuusamo
Director, Public Relations                    Asikkala
University of Vaasa

40    TAPIOLA GROUP      Annual Report 2009
                                                                                                             Corporate Governance

Customer Committee

             Hanna Lehtimäki                          Esa Hasu                                Anssi Keinänen

   Matti Kuittinen                    Jouni Jyrinki                              Sampsa Saralehto       Lasse Koskelainen

                                        Term                                      Term                                           Term
Hanna Lehtimäki                   2010–2012     Esa Hasu                          2011     Lasse Koskelainen                     2012
(Chairman)                                      Eastern Finland                            Eastern Finland
Western Finland                                 Finance Director                           Professor
Chairman of the Board of Directors,             Kymenlaakson Sähkö Oy                      Lappeenranta University
Doctor of Science (Business Administration)     Elimäki                                    of Technology
Life Works Consulting Oy,                                                                  Lappeenranta
University of Tampere                           Jouni Jyrinki                 2010–2012
Tampere                                         Northern Finland                           Matti Kuittinen                  2010–2012
                                                Executive Director                         Southwestern Finland
Sampsa Saralehto                 2010–2012      MTK, Central Ostrobothnia                  Entrepreneur, architect
(Vice Chairman)                                 Kokkola                                    Arkkitehtitoimisto Kombi
Southern Finland                                                                           Lohja
Deputy Managing Director,                       Anssi Keinänen                     2010
Doctor of Social Science, Docent                Eastern Finland
Helsinki Region Chamber of Commerce             Professor/D.Sc. (Bus. Adm.)
Espoo                                           University of Joensuu

                                                                                              Annual Report 2009 TAPIOLA GROUP    41
Corporate Governance

Supervisory Board                                                      Supervisory Board
Tapiola General Mutual Insurance                                       Tapiola Mutual Life Assurance
Company                                                                Company
from 23 April 2009                                                     from 12 January 2010

                                                               Term                                                                     Term
Chairman                                                               Chairman
Antti Lemmetyinen, Fund Director, Counsellor                           Jouko Havunen, Director (Public Relations), Laihia         2008–2011
of Social Welfare, Espoo                                   2008–2011
                                                                       1. Vice Chairman
Vice Chairman                                                          Marjut Nordström, Managing Director, Asikkala              2009–2012
Juha Marttila, Simo                                        2009–2012
PhD (Agr. & For.)                                                      2nd Vice Chairman
                                                                       Marita Ruohonen, Executive Director, Kirkkonummi           2009–2012
Heli Alanko, Managing Director, Järvenpää                  2009–2012   Member
Philip Aminoff, Managing Director, Helsinki                2008–2011   Seppo Aaltonen, Director, Helsinki                            2008–2011
Matti Hilli, Managing Director, Jyväskylä                  2009–2012   Jari Bachmann, Managing Director, Helsinki                    2008–2011
Lauri Hintikka, Managing Director, Espoo                   2009–2012   Vesa Ekroos, Member of the Board of Directors, Helsinki       2008–2011
Kari Jalas, PhD (political science), Helsinki              2007–2010   Heikki Halme, Chairman of the Board of Directors,
Matti Karppinen Managing Director, Lempäälä                2008–2011   Tampere                                                       2008–2011
Jukka Kola, Professor, Vantaa                              2008–2011   Heikki Hämäläinen, Managing Director, Mikkeli                 2009–2012
Timo U. Korhonen, Managing Director, Espoo                 2008–2011   Pekka Ilmivalta, Lawyer, Espoo                                2008–2011
Markku Koskinen, Chairman of the Board of Directors,                   Veikko Kantero, Chairman of the Board of Directors, Espoo 2009–2012
Hämeenkoski                                                2009–2012   Arttu Laine, Managing Director, Kokkola                       2007–2010
Olavi Kuusela, B.Sc. (agrology), Helsinki                  2009–2012   Riitta Laitila, Chemist, Kokkola                              2007–2010
Raimo Leivo, Chairman of the Board of Directors, Tampere   2007–2010   Saara Lampelo, Managing Director, Helsinki                    2007–2010
Timo Leppänen, Managing Director, Kajaani                  2007–2010   Sisko Lehtola, B.Sc. (agriculture), Pyhäntä                   2009–2012
Jussi Miilukangas, Director, Raahe                         2009–2012   Merja Lehtonen, Home Economics Teacher, Riihimäki             2008–2011
Jorma Mikkonen, Branch Manager, Vantaa                     2008–2011   Ahti Manninen, kauppaneuvos (Finnish honorary title),
Ulla-Maija Moisio, Master of Laws, Turku                   2007–2010   Lappeenranta                                                  2008–2011
Juha Nurmi, Managing Director, Espoo                       2009–2012   Minna Metsälä, Managing Director, Nokia                       2009–2012
Pirkko Rantanen-Kervinen, Executive Advisor, Vantaa        2008–2011   Marita Modenius, Headmistress Hollola                         2008–2011
Kasperi Saari, Managing Director, Helsinki                 2009–2012    Juha Moilanen, Managing Director, Pieksänmaa                 2007–2010
Antti Sahi, Executive Director, Kerava                     2009–2012   Joel Nemes, Managing Director, Helsinki                       2008–2011
Marja Salenius, Claims Manager, Nurmijärvi                 2007–2010   Kuisma Niemelä, Managing Director, Jyväskylä                  2007–2010
Olli Vuorio, Chief of Police, Vihti                        2007–2010   Jorma Niiniaho, kauppaneuvos (Finnish honorary title),
                                                                       Hamina                                                        2007–2010
                                                                       Eeva Parkkivaara-Anttinen, Chairman of the
                                                                       Board of Directors, Kauniainen                                2007–2010
                                                                       Matti Perkonoja, Finance Director, Mynämäki                   2009–2012
                                                                       Juhani Pitkäkoski, Managing Director, Helsinki                2009–2012
                                                                       Arja Pohja, Services Manager, Turku                           2009–2012
                                                                       Liisa Sahi, Executive Director, Espoo                         2009–2012
                                                                                                                   (resigned 11 February 2010)
                                                                       Jouko Setälä, Managing Director, Helsinki                     2008–2011
                                                                       Merja Siltanen, Chairwoman, Turku                             2009–2012
                                                                       Ulla Vanninen, Project Manager, Espoo                         2008–2010
                                                                       Jouko Virranniemi, teollisuusneuvos (Finnish honorary title),
                                                                       Kuusamo                                                       2009–2012

42    TAPIOLA GROUP    Annual Report 2009
                                                                                                                      Corporate Governance

Supervisory Board                                                       Boards of Directors
Tapiola Mutual Pension Insurance                                        Tapiola General and Tapiola Life
Company                                                                 from 1 January 2010

from 23 April 2009

Chairman                                                                Chairman
Hannu Anttila, Executive Vice President, Strategy, Espoo   2007–2010    Asmo Kalpala, President

Vice Chairman                                                           Vice Chairman
2nd Vice Chairman Kaarlo Julkunen, Espoo                   2008–2011    Jari Saine, Group Director

Member                                                                  Member
Sakari Ahdekivi, Finance Director, Espoo                  2009–2010     Antti Calonius, Group Director
Ilkka Brotherus, Managing Director, Hyvinkää               2007–2010    Arto Jurttila, Group Director
Jarkko Eloranta, Branch Manager, Helsinki                 2008–2011
Hannu Hakala, Quality Engineer, Hämeenlinna               2008–2011     Deputy member
Mia Harkko, Elected Representative, Kotka                 2009–2012     Jari Eklund, Director
Juhani Hyytiäinen, Chairman, Turku                        2009–2011     Markku Paakkanen, Director
Pekka Immeli, Director, Helsinki                           2007–2010    Jari Sundström, Group Director
Timo Jaakkola, Director, Espoo                            2009–2012
Iiro Ketola, Elected Representative, Espoo                 2007–2010
Tapani Kinnunen, Managing Director, Kouvola               2009–2012
Reijo Kivelä, Managing Director, Oulu                     2009–2012     Tapiola Pension’s Board of Directors from 1 January 2010
Harri Koponen, Managing Director, Naantali                2008–2011
Timo Lepistö, Managing Director, Porvoo                   2009–2012     Chairman
Seppo Maskonen, Managing Director, Oulu                   2009–2012     Harri Miettinen, Senior Vice President, Development (SOK)
Otto Mikkonen, teollisuusneuvos (Finnish honorary title),
Joensuu                                                   2009–2012     Vice Chairman
Timo Mäki-Ullakko, Managing Director, Riihimäki           2008–2011     Ann Selin, Chairwoman (PAM, SAK)
Jarmo Mäntyharju, Farmer, Oripää                           2007–2010
Max van der Pals, Farmer, Agrologist, Lohja as             2007–2010    Member
Pertti Raitoharju, Kokemäki                                2007–2010    Aarne Hallama, Managing Director, Scandic Hotels Oy
Juha Ruohola, Group Vice President, Seinäjoki             2009–2012     Eeva-Liisa Inkeroinen, Director (EK)
Kimmo Simberg, Managing Director, Seinäjoki               2008–2011     Kaija Kallinen, Assistant Director (Industrial Policy Unit, SAK)
Jouko Vehmas, Managing Director, Kouvola                  2008–2011     Asmo Kalpala, President (Tapiola Group)
Klaus Viljanmaa, Chairman of the Board of Directors,                    Penna Urrila, Senior Economist (EK)
Jalasjärvi                                                2008–2011     Arto Okkonen, Board Chairman (Imagon Oy)
                                           (resigned 27 October 2009)   Heli Puura, Legal Adviser (STTK)
                                                                        Jari Saine, Group Director (Tapiola Group)
                                                                        Timo Lindholm, Senior Economist (Suomen Yrittäjät)
                                                                        Jari Karlson, CFO (Orion Plc)

                                                                        Deputy member
                                                                        Harri Hietala, Managing Director (TIKLI ry, TT)
                                                                        Jorma Tilander, Executive Director (Association of Finnish Lawyers,
                                                                        Antti Calonius, Group Director (Tapiola Group), until 31 May 2010
                                                                        Jari Sundström, Group Director (Tapiola Group), from 1 June 2010

                                                                                                       Annual Report 2009 TAPIOLA GROUP       43
Tapiola’s press releases in 2009

 9.1.2009 Tapiola continues co-operation with the Finnish Red Cross      3.6.2009 Harri Lauslahti from Tapiola Bank is the Influencer
                                                                                   of the Year in banking and insurance business
 9.1.2009 Tapiola Bank lowers its prime rate to 2.95 per cent
                                                                         3.6.2009 Summer holidays are the most dangerous time of the year:
27.1.2009 Tapiola Mutuality Examining Committee:                                   many return to work late because of accidents
           “Increased and Explicit Information on Mutuality”
                                                                        10.6.2009 Tapiola Bank’s review of business conditions I/2009 –
30.1.2009 Advance Information on Financial Statements:                             forecast for 2009–2010
           Tapiola Bank Ltd. profitable, number of unit holders
           in Tapiola Asset Management Ltd. increased                  22.6.2009 Fund managed by Tapiola Real Estate bought a company
                                                                                   from Lemminkäinen
 9.2.2009 Tapiola Bank lowers its prime rate to 2.3 per cent
                                                                        29.7.2009 Interesting job, work environment and flexibility of work
16.2.2009 Advance information: The solvency of Tapiola Group                       have the strongest effect on job satisfaction
           companies remained high
                                                                         5.8.2009 Mid-year result of Tapiola Group companies to be
24.2.2009 Finnish company managers are well, but the recession                     published 20.8
           worries them
                                                                        17.8.2009 Tapiola Bank lowers prime rate, raises current account
27.2.2009 AMICE (the Association of Mutual Insurers and Insurance                  interest rate and improves terms of current accounts
           Cooperatives in Europe) likes the proposal for renewed
           European financial supervision                               19.8.2009 Mid-year result: Tapiola Pension’s overall result rose
                                                                                   to clear profitability
 4.3.2009 Problems that cause disability are not tackled quickly
           enough                                                       19.8.2009 Mid-year result: Tapiola Group’s result improved

 4.3.2009 Survey: Finns save to secure their income level              28.8.2009 Tapiola’s new term deposit with guaranteed interest rate
           in retirement                                                           invests in climate
 5.3.2009 MTK and Tapiola developed the Maatilayrittäjän Omaturva      28.8.2009 Tapiola to revamp its regional organisation
           scheme for farmers
                                                                        10.9.2009 Tapiola Group to establish new customer service centre
11.3.2009 Tapiola Group and Pirkanmaa Hospital District                            of 60 employees in Kokkola
           to co-operate in early research of brain injuries caused
           by accidents                                                 16.9.2009 Consumers’ opinions on their financial safety net vary –
                                                                                   weak outlook for the Finnish economy persists
12.3.2009 Tapiola’s Oma Scholarship in 2009 to circus artist Oskar
           Rask                                                         16.9.2009 Tapiola and YIT to build premises for Skanno

16.3.2009 Tapiola Group’s Financial Statements for 2008                 17.9.2009 Tapiola Academy: Responsible business, team spirit
                                                                                   at work and new distribution of work are keys to future
18.3.2009 Tapiola Bank’s review of business conditions 1/09:                       economic growth
           Consumers lack long-term financial plans despite shaky
           employment outlook                                          30.9.2009 Tapiola Group to build rental houses and offices in Helsinki

24.3.2009 YIT and Tapiola to modernise a building in Sinimäki, Espoo    8.10.2009 Tapiola KR IV Ky bought a residential building site from
26.3.2009 New important customer for Tapiola Real Estate
                                                                       13.10.2009 Increased willingness by investors to take risks increases
30.3.2009 University of Art and Design presents an installation                    mutual fund investments
           in T-Room
                                                                       16.10.2009 Tapiola Bank introduces new investment deposit
31.3.2009 Tapiola launches Private banking
                                                                       19.10.2009 Tapiola Pension’s excellent nine-month result made
16.4.2009 Excellent rating for Tapiola General                                     up for the loss incurred in 2008
22.4.2009 Tapiola Pension’s investment operations showed profit        28.10.2009 Driving too close to the car in front of you leads
                                                                                   to accidents every winter
27.4.2009 The Kultainen Oras (“Golden sprout”) award granted
           to private care home service provider                        3.11.2009 Tapiola Real estate and Corbel to co-operate

28.4.2009 Tapiola Group celebrated topping-out of new headquarters      4.11.2009 Tapiola has been running the Kotimatka real estate
                                                                                   business service for a full year in January 2010
28.4.2009 Tapiola develops office network and phone service
           in Helsinki region                                          11.11.2009 survey: Nearly half of women are not willing
                                                                                   to compromise on corporate responsibility in investment
29.4.2009 Tapiola introduces new investment deposit with                           activities
           guaranteed interest rate
                                                                       18.11.2009 Tapiola Pension’s Board of Directors elected for
 6.5.2009 Tapiola Bank lowers prime rate and raises current account                2010–2012
           interest rate
                                                                       19.11.2009 Tapiola Pension’s investment organisation is the best
 6.5.2009 Energy companies benefit from government recovery                        in Europe
                                                                       23.11.2009 Tapiola Bank introduces new investment deposit
11.5.2009 Importance of corporate responsibility emphasised during
           economic recession                                          27.11.2009 Recognition for six canine heroes

27.5.2009 University of Art and Design opens summer exhibition          1.12.2009 Jari Sundström starts as the new director of the business
           in T-room on 2 June 2009                                                field Companies, Corporations and Major Clients
28.5.2009 Tapiola’s new fund aims for profit and limits risk of loss    8.12.2009 Finland among the last to rise from the recession –
                                                                                   1 per cent economic growth in 2010
 1.6.2009 Asmo Kalpala to continue as Tapiola Group president
                                                                       23.12.2009 Returning to work made easier for people on disability
 2.6.2009 Tapiola Corporate Life to merge with parent company                      pension
           Tapiola Life

44   TAPIOLA GROUP         Annual Report 2009
Financial statements and annual reports
of Tapiola Group companies

  Tapiola General                  Tapiola Life                    Tapiola Pension
  Annual Report 2009               Annual Report 2009              Annual Report 2009

  Tapiola Bank Ltd
  Annual Report 2009

The financial statements and annual reports of Tapiola Group companies
will be published in English on the Internet in May at

Investment reviews of
Tapiola Group companies

  Tapiola General’s               Tapiola Life’s                   Tapiola Pension’s
  investment activities           investment activities and        investment year
  and risk management             risk management                  2009
  2009                            2009

The investment reviews of Tapiola General, Tapiola Life and Tapiola Pension in 2009 are available in English at

                                                                                                           Annual Report 2009 TAPIOLA GROUP   45
Tapiola Group is headquartered in Tapiola, Espoo. The topping-out of
Tapiola’s new headquarters was celebrated in April 2009. The building
was completed early in 2010, and in mid-March the personnel started
moving in. The new building has room for more than 1,500 employees.
The building has a total area of more than 71,000 square metres. It
has six floors above the ground and three underground floors. The
street address of the new office building is Revontulenkuja 1, Tapiola.

Tapiola Group
Street address: Revontulenkuja 1, Tapiola
Postal address: FI-02010 Tapiola
Tel: +358 9 4531
Fax: +358 9 453 2146

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