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Financial strategy

Gjensidige shall have a capitalisation that is adapted to the Group's strategic targets and risk appetite at all times. The Group shall maintain its financial flexibility and at the same time exercise a stringent capital discipline that supports the return on equity target and dividend policy.

The capitalisation of the Group will be based on a solvency margin target of 135-200 per cent for the Partial Internal Model (PIM). This applies both for the regulatory approved model (Legal Perspective) and the model with own calibration (Own Partial Internal Model).

The solvency margin level should remain in the upper half of the range among other things to support an ‘A’ rating, to stabilise regular dividends over time, to ensure financial flexibility for smaller acquisitions and organic growth not financed through retained earnings, as well as providing a buffer for regulatory changes.

All subsidiaries will be capitalised in line with the respective regulatory requirements, while capital in excess of the requirements will, as far as possible, be held in the parent company Gjensidige Forsikring ASA.
The Group will make use of all forms of Tier 1 and Tier 2 capital, including subordinated debt, in a responsible and value-optimising manner and within the limits set by regulators and rating agencies.