Capital and solvency requirements

By the end of 2014, PensionDanmark’s regulatory capital was DKK 4.1bn. The company’s required regulatury capital was DKK 1,1bn, giving solid 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 2017 2016
Financial risks after tax 1,546 1,392
Insurance risks 866 689
Correlation -451 -325
Operational risks 115 106
Of which, covered by provisions -1072 -888
Required regulatory capital 1,072 972
Regulatory capital 4,080 3,676