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. Any future excess capital will be distributed to the shareholders over time.

The capitalisation of the Group will be based on the following requirements:

  • Standard Formula (SF): 120% - 150%
  • Partial Internal Model (PIM): 125% - 175%

Solvency margin levels are expected to be around the upper end of the margin ranges in order to support an ‘A’ rating from Standard & Poor’s or similar, to stabilise regular dividends over time, ensure financial flexibility for smaller acquisitions and organic growth not financed through retained earnings, as well as providing a buffer against regulatory uncertainties.

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.

The financial strategy for Gjensidige Bank can be found here .