1 Introduction 1.1. The Board of Directors of If Skadeförsäkring Holding AB (publ), If Skadeförsäkring AB (publ), If Livförsäkring AB, If P&C Insurance Company Ltd and If P&C Insurance AS (jointly referred to as the If group ) have decided to tender the external audit for the If group and for each company for the financial year 2017. The audit period will commence 1 st January 2017. 1.2. The If group issues an extensive annual report which will provide you with an introduction to the If group s operations. In addition, the individual aforementioned companies within the If group issue informative external financial statements. Additional information will be provided at a meeting with management and key functions, please see below. 2 RFP Purpose and Scope 2.1 In light of the new EU regulatory framework on statutory audit, the aforementioned companies within the If group are required to tender their external audit requirements. The intention is for the selected firm to commence its services for the financial year 2017 audit i.e. commencing 1 st January 2017. The intention is that the selected firm s appointment will be renewed on an annual basis for up to ten years, subject to approval by the shareholders, any regulatory restrictions and the board of directors assessment of the performance of the firm. The purpose of this Request for Proposal ( RFP ) is to seek proposals from firms to meet the If group s external audit requirements, as defined within this document. This RFP provides background material and describes the requirements for the firms responses. 2.2 The If group expects the selected firm to carry out an audit for group purposes for reporting to the auditors of Sampo Oyj, as well as to carry out statutory audits for the aforementioned legal entities within the If Group, including where required the relevant branches of such legal entities. The firm is to ensure that the necessary regulatory procedures are followed for all audited entities, in particular the procedures to independence and quality control. 2.3 The scope of the requested services is further defined as follows: (A) If group Audit, comprising: (i) (ii) Year-end signoff of the reporting packages consolidated by Sampo Oyj, Hard Close audit and issuance of an Early Warning memo based on the interim financial information for September, (B) Statutory Audit of each aforementioned legal entity within the If group, including where required the relevant branches of such legal entities (C) Out of Scope Requirements. In addition to the requested services set out above, firms shall also indicate the rates they would charge for out of scope requirements as well the process for agreeing any such out of scope fees. 1
3 Responding to this Request for Proposal Basis of Response 3.1 The If group is looking for robust and innovative proposals from firms to deliver the external audit requirements. Firms will be expected to demonstrate their technical capability, experience, geographic coverage and service delivery in the provision of these requirements through a combination of the written response document, interviews and presentations. 3.2 The If group reserves the right in its sole discretion and at any time, to amend, vary, or supplement any of the information, terms or requirements contained in this RFP. Consideration for Proposal 3.3 The If group will evaluate each firm s response with reference to the following criteria, where we expect your proposal to describe your firm, its culture and what sets your audit approach apart. QUALITY, EFFICIENCY AND EFFECTIVENESS OF AUDIT Overall audit approach and methodology, including approach on materiality and proposed group materiality level Industry, technical and other specialist expertise to be applied (e.g. data analytics) Approach to concluding on key accounting treatments Approach to resolving significant audit issues Approach to reporting audit findings Description of quality control and client satisfaction processes An overview of recent findings from reviews made by supervisory bodies in all Nordic and Baltic countries and the PCAOB An overview of any material liability claims or disputes involving the firm during the past 10 years. UNDERSTANDING OF THE IF GROUP S BUSINESS AND INDUSTRY Understanding of the If group s business and the property and casualty insurance industry Brief consideration of the If group s competitive position and attendant risks (commercial, accounting, financial reporting, reputational, etc.) CONTINUOUS IMPROVEMENT AND INNOVATION How you ensure continuous improvement in your audit delivery Ideas for innovation in your audit approach while maintaining rigorous audit standards 2
INDEPENDENCE The robustness of your systems and processes for managing auditor independence How your firm has improved processes following any auditor independence conflicts in the past Specification of consulting assignments within the Sampo group GEOGRAPHIC COVERAGE Ability to effectively align resources to the If group s organisation/key markets. How your firm leverages local resources in order to minimise costs FIRM QUALIFICATIONS AND THE TEAM Experience of partners, senior managers and key specialists, in particular specialists for the actuarial audit, tax and VAT audit, IT audit and audit of pensions. Capability of the firm to serve clients of the scale and scope of the If group. Your firm s experience of serving large clients within the financial and insurance industries. Your approach to succession planning and ensuring continuity firms to detail a structured transition plan where applicable TRANSITION PLAN Process to ensure minimal disruption of the If group s business during the transitioning of auditors AUDIT FEE Total fee, broken down by local currency and translated at spot rates at the tender due date Billing schedule Strategy for managing costs over the duration of the engagement Process for managing and charging for out of scope fees 3
RFP Procedure and Timelines 3.4 The timetable for the tender process is set out below. While every effort will be made to meet these dates, the timetable may change for operational reasons and firms will be notified accordingly. ACTIVITY DATE RFP published on If s website August 31, 2016 Meeting with management and key functions September 29, 2016 Tender response deadline October 10, 2016 Presentations by selected firm(s) (2 hours) Week 42 Decision communicated to firms During December, 2016 Timing and Delivery of Response 3.5 Firms are required to send a notification by email of their intention to attend the meeting with management and key functions on September 29, 2016 to the address set out below by September 22, 2016. 3.6 Firms are required to submit their RFP response by email to the address set out below by October 10, 2016. 3.7 The If group reserves the right in its sole discretion and at any time, in respect of all firms tendering under this RFP process or any of such firms, to withdraw an invitation to a firm to submit a proposal. Proposed Content of Responses 3.8 Firms are required to respond with a maximum 20 page single sided A4 document (pdf format) plus CV biographies for each key team member. Firms should structure their response in accordance with the criteria and factors set out in section 3.3 of this RFP. A specification of fees and consulting assignments within the Sampo group should be included in a separate document. Communications and Contacts 3.9 Responses to the RFP and any formal queries concerning the content of this RFP should be sent via e-mail to eva-karin.erdenius@if.se. All queries and responses will be shared with all competing firms. 3.10 Queries must not be directed through any other If group employee, contractor or consultant. Attempts to do so will harm the firm s bid. 3.11 Each firm should designate a sole point of contact for communications, with phone number and e-mail address. The firms should also identify the executive officer of the firm who has authority (subject to the firm s normal corporate formalities, such as senior management and/or board approval of transactions exceeding a certain 4
monetary threshold) to make commitments on behalf of the firm with respect to this RFP. 3.12 The If group will regard all email communications originating from such designated point of contact as having been transmitted with the full authority of the firm. 4 Disclaimer 4.1 An invitation to participate in this tender should in no way be construed as a commitment by the If group to enter into any contractual obligations with any participating firm. 4.2 All costs associated with a firm s response (including, without limitation, in relation to meetings, re-submissions, supplementary information, demonstrations and workshops) are the firm's responsibility. 4.3 While the information and data provided in this RFP are believed by the If group to be accurate, neither the If group nor any of its directors, employees or agents gives or has any authority to give any representation or warranty (express or implied) concerning the accuracy or completeness of this RFP or the data provided or of any other written or oral communication given or made available to the firm, nor shall any of them be liable in any way for any inaccuracy or misleading statement in, or omission from, this RFP. Each firm is responsible for making its own evaluation of all information, circumstances and data in preparing and submitting responses to this RFP. 4.4 If during the course of its evaluation, a firm becomes aware of an error in this RFP or in the information or data provided, the firm shall notify the If group of such error. The If group reserves the right to share information on errors with other bidding firms. 4.5 The firm will have no claim against the If group or against any of its affiliates and their respective representatives with respect to the exercise of, or failure to exercise, any rights under the RFP process. 5 Confidentiality 5.1 Confidential information disclosed and received during the RFP process shall be subject to the provisions of the Non-Disclosure Agreement attached hereto. 5.2 Participating firms shall print and sign the Non-Disclosure Agreement and present it at the meeting with management and key functions on September 29, 2016. Any firm not participating in the meeting shall submit a signed copy of the Non- Disclosure Agreement together with its RFP response. 5.3 There will be no obligation on the part of the If group to share any of the results or conclusions of the RFP process with any firm. 5