This chapter presents the capitalization of Sampo Group at Group level and at subsidiary level at the end of 2012 as well as the changes that took place during the year 2012.
In Sampo Group, risks and the respective capital requirements are assessed internally as well as according to the methods defined by the regulators. Also in Sampo Group’s continuous dialogue with the rating agencies, capitalization is a central subject of discussion. Capitalization assessments are conducted both at company level and at Group level to ensure the balance between risks and capital.
In the internal assessment, the amount of adjusted solvency capital is compared to the economic capital. Definitions of adjusted solvency capital and economic capital are included in chapter Balance between Risks, Capital and Earnings. In the regulatory assessment, the regulatory solvency capital is compared to the regulatory capital requirement. In rating agency based capitalization assessment, the objective is to balance the available capital measured by respective rating agency criteria with the capital amount needed to achieve the internally set rating target.