The objective of shareholders' equity exceeding the statutory minimum is to protect the business against situations when major disasters could threaten future operations. However, such protection is often available by other means, for example reinsurance or financial instruments.

As supplement to capital adequacy, Topdanmark has raised subordinated loan capital and bought significant reinsurance cover of disaster risks. Disaster meaning both isolated events and combinations of isolated events that would threaten Topdanmark's ability to continue operating at its chosen level of shareholders' equity.

Additionally, Topdanmark has invested in financial instruments reducing the risk of sharp falls in equity markets and also in instruments protecting the life insurance Group against any adverse consequences of marked reductions in interest rates.

In setting a reasonable level of capital adequacy, Topdanmark takes into account the factors that would have a material adverse impact on shareholders' equity. At the same time, it allows for the effect of protection in the form of reinsurance and financial instruments.

We have a disciplined approach to capital. Capital that is not necessary to maintain operations will be distributed to the shareholders and to avoid accumulation of unnecessary excess capital.

The distribution potential in 2022 can be assessed by comparing the capital base (including i.a. the expected profit as well as the development in intangible assets) with the solvency requirement. The solvency cover must be viewed in the light of a conservative level (e.g. 170-190%) which includes an appropriate management buffer to ensure day-to-day operations and the ability to withstand fluctuations, as illustrated below:

Topdanmark's Board of Directors has authorisation granted in the Articles of Association to increase the Company's share capital, to raise convertible loans and/or issue warrants. The issues may be with or without pre-emptive rights for the Company's shareholders.

The total authorisation is restricted to 2,500,000 shares and expires on 12 April 2023.

Topdanmark has one class of shares. The shares are negotiable instruments with no restrictions on their transferability. The shares are registered in the name of the holder in Topdanmark's register of shareholders or inscribed in the Company's own inscription system. No share confers any special rights upon the holder.

Since 1989 the share capital has varied as a result of share buy-backs, as you can see here.