Financial tar­gets

Financial tar­gets

The following financial targets have been defined for Mandatum: 

  • Solvency ratio: Over the medium-term, Mandatum is targeting a solvency ratio between 170 and 200 per cent; and 
  • Cumulative dividend 2024-2026: Between 2024 and 2026 Mandatum targets to distribute EUR 500 million in cumulative ordinary dividends, with upside potential from excess capital distributions. 

Going forward Mandatum is aiming to maintain a resilient balance sheet and solvency position, with continued strong organic capital generation and further management of the with-profit portfolio supporting stable dividend payments and strategic growth initiatives (see also: Strategy). 

Mandatum's solvency ratio as at 30 June 2023 was 296.1 per cent. As at 31 December 2022, Mandatum's solvency ratio was 265.5 per cent (191.8 per cent as at 31 December 2021 and 187.6 per cent as at 31 December 2020). 

The following segmental financial targets have been defined for Mandatum: 

Capital-light business*: 

  • Annual net flows: Over the medium-term. Mandatum is targeting annual net flows of 5 per cent of client AuM**: 
  • Fee margin: Mandatum is targeting disciplined pricing and fee margins: 
  • Cost/income ratio: Mandatum targets to improve the cost/income ratio***. 

With-profit business: 

  • Liability development: Mandatum is targeting the with-profit portfolio run-off with active portfolio management actions. 

* Based on Client AuM (€11.2bn). i.e. excluding AuM from with-profit (€4.3bn, 30th June 2023) and large mandates (€4.6bn, 30th June 2023).  
** Based on beginning of period client assets under management. 
*** Related to investment and asset management income and expenses.