Capital and solvency requirements
PensionDanmark is thoroughly consolidated; by the end of 2018, the capital base amounted to EUR 0.55bn, with an estimated required regulatory capital of EUR 0.13bn, giving PensionDanmark significant excess solvency.
As a Danish insurance company, PensionDanmark is subject to Danish solvency rules. According to the rule set, the required regulatory capitalis calculated, based on the company’s risk evaluation and sets a requirement for the size of the capital base. This is to ensure that the company has sufficient capital in relation to the accepted risks.
During 2016, the Board of Directors executed a risk evaluation, and decided to continuously follow the FSA’s standard formula.
PensionDanmark works systematically on the company's risks and has introduced a number of initiatives to monitor and limit them.
Regulatory capital and risk
| DKKm | 2018 |
2017 |
| Financial risks after tax | 1.378 | 1.546 |
| Insurance risks | 940 | 866 |
| Correlation | -472 | -451 |
| Operational risks | 120 | 115 |
| Of which, covered by provisions | -977 | -1.004 |
| Required regulatory capital | 988 |
1.072 |
| Regulatory capital | 4.191 | 4.080 |