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 31 March 2024 was 216.5 per cent. 

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.