Growth from capital-light business

Mandatum aims to become the fastest-growing Nordic asset and wealth manager. During this strategy period, the company's focus is on expanding the foothold of asset management internationally, accelerating the growth of private wealth management in Finland, increasing sales by leveraging excellent corporate client relationships, and improving operational efficiency.

Mandatum has divided its business into four areas: asset and wealth management, corporate clients, retail clients, and with-profit business. The strategy is to grow profitably in the capital-light business areas, i.e. in asset and wealth management, corporate clients and retail clients, while scaling down the more 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. While with-profit business is profitable, due to its high capital requirement, the return on capital remains relatively low. For this reason, Mandatum’s focus is now on capital-light business.

As the with-profit portfolio declines, capital is released. This, together with the Group’s strong solvency position and the growth of capital-light business, forms the basis of Mandatum’s dividend capacity.

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.

VISION AND STRATEGIC PRIORITIES

Mandatum’s growth objectives are ambitious: its vision is to become the fastest-growing Nordic asset and wealth manager with optimised growth in Finnish life and pension. During the strategy period of 2025–2028, the focus is on expanding the foothold in asset management internationally, especially in the Nordics, accelerating the growth of wealth management in Finland, leveraging corporate client relations for growth, and improving operational efficiency.

Mandatum is well-positioned to achieve its goals: the company has extensive experience and a proven track record in investment operations, a strong brand, high-quality products, and satisfied clients and employees.

FINANCIAL TARGETS

In June 2025, Mandatum announced new financial targets as part of its strategy, reinforcing its commitment to growth within the capital-light business and to shareholder value creation. The financial targets for 2025–2028 are:

• Return on equity (ROE): above 20%
• Capital-light profit before taxes: Compound annual growth rate (CAGR) above 10%
• Solvency margin: target range of 
160–180% with cumulative shareholder payouts exceeding EUR 1 billion.