Growth from capital-light business

Mandatum’s long-term strategy is to grow in the capital-light business areas, i.e. in Wealth management, Corporate clients and Retail clients, while scaling down the capital-heavy with-profit business in a planned and predictable manner. This strategy has been in place since the early 2000s, when sales of new with-profit pension insurance policies were discontinued and the company started building growth in the capital-light business areas.

At the core of the growth strategy are high-quality products that stand out and a leading market position in Corporate clients. Growth is sought both in Finland and internationally – in particular in Sweden and Denmark. Regarding products and services, Mandatum focuses on further improving, cross-utilising and expanding its comprehensive offering.

In the capital-light business, the strategy is to further increase the volume of assets under management and the fee-generating business.

In the with-profit business, the strategy is to seek a good investment return with moderate risk, and to free up capital as the insurance portfolio becomes smaller.

BUSINESS MODEL

Mandatum’s key success factor is its ability to target its diverse service offering precisely to match the situations and needs of different client segments. With this operating model, the company aims to generate added value for both clients and Mandatum’s own business. In distributing products and services, the company’s skilled sales and customer relations are a key strength.

Mandatum focuses on understanding its client needs and the long-term management of client relations, and strives to be resilient to market movements. Its own strong sales force and an efficient distribution network protect Mandatum’s market position. At the same time, the company focuses on profitable growth and improving the efficiency of its operating model.