Topdanmark's shareholders' equity should be sufficient to support its current operations. We constantly focus on the factors that influence the capital structure: Finance and investment policy.
Our objective for the capital structure is to ensure that its capital base by way of shareholders' equity and supplements is exactly sufficient cover regulatory requirements plus an appropriate management buffer to ensure day-to-day operations and the ability to withstand fluctuations - but not larger. An example of a conservative level of solvency cover could be 170-190%. Excess capital is sought to be paid to the shareholders as dividends.
The primary source of value creation should be from accepting insurance risk. We also believe that Topdanmark can supplement the value creation from the primary business activities by utilising the significant capital strength to accept a certain amount of financial risk thus increasing the expected return on the invested funds. Insurance risks are an inevitable consequence of the core business, which could be attractive to those investors who want to diversify the risk profile of their equity portfolios.