Our financial strength is your security that we are able to deliver what we promise - it is the capital we provide as collateral for your savings. At year end 2013, our financial strength was significantly above the level required by law.
Danica Pension thus has a solid financial strength, which at 31 December 2013 stood at DKK 10.5 billion.
Financial strength and solvency requirement
In connection with the coming Solvency II rules, the Danish FSA in 2007 introduced a requirement for insurance companies to calculate their solvency need. The solvency need is a risk-based capital requirement, calculated according to the company's own risk assessment, to complement the solvency requirement. All Danish insurance companies are required to have a capital base corresponding at least to the higher of the solvency requirement and the solvency need. All companies in the Danica Group complied with this in 2013.
The Danish FSA has issued an executive order which sets out the principles guiding the calculation of solvency need effective from 1 January 2014.