Principle of Fairness

Mandatum Life aims to provide, in the long run and before expenses and taxes, an overall bonus on insurance savings eligible for distribution of profit that is at least equivalent to the interest level on long-term fixed-income investments considered to have the lowest risk at any given time. According to the current interpretation, German bonds are viewed as the closest option for risk-free, long-term fixed-income investments.

For the time being, however, Mandatum Life's return target on savings insurance corresponds to the interest level on Finnish bonds with a maturity of five years and on pension insurance the return target corresponds to Finnish bonds with a maturity of ten years. The overall bonus consists of the technical rate of interest and additional bonuses that are determined annually.

Mandatum Life Insurance Company Ltd's Board of Directors annually decides on the additional bonuses, taking into account, among other things, the general interest rate, the company's long-term success in investment activities, the technical rate of interest on the insurance and the company's solvency. Also taken into account are any future claims expenses that the company must prepare for which may be higher than originally anticipated for the type of insurance in question, due to, for example, a significant change in the mortality rate of the insured.

In risk insurance policies, the principle of fairness is applied in the form of increased sums payable at death or as insurance premium discounts.

The company aims for continuity in the level of additional bonuses.

The targets are valid until further notice. Mandatum Life Insurance Company Ltd's Board of Directors retains the right to change the targets and principles within the scope of legislation governing insurance companies. The published distribution principles for additional bonuses and the application of the principle of fairness are not part of the insurance contract.