Financial strategy

Gjensidige shall target 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 have a stringent capital discipline. Any future excess capital over and above the targeted capitalisation will, over time, be distributed to the shareholders.

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

  •  Legal requirement (Solvency II standard formula) + 15%
  • Internal, risk-based perspective + 20%
  • Rating-based requirement without buffer

Targeted capitalisation exceeding this will ensure financial flexibility related to organic growth and smaller acquisitions that are not financed through retained earnings, as well as stabilising dividend over time.

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 .