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Capital strategy

Capital discipline will continue to be given high priority, and our capital strategy will support our attractive dividend policy and contribute to ensuring high and stable nominal dividends on a regular basis. 
Gjensidige’s capitalisation must be adapted at all times to the Group’s strategic goals and appetite for risk. The Group shall maintain its financial flexibility, while exercising strict 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 150–200 per cent for the Partial Internal Model (PIM). This applies to both the regulatory approved model (legal perspective) and the calibrated model (own partial internal model). The solvency margin level should support an ‘A’ rating from Standard & Poor’s, stable regular dividends over time, 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 statutory requirements, while capital in excess of the requirements will, as far as possible, be retained in the parent company Gjensidige Forsikring ASA. 
The Group will make use of all forms of subordinated loans and other external financing, in a responsible and valueoptimising manner and within the limits set by authorities and rating agencies.