TAALERI PLC STOCK EXCHANGE RELEASE 14 June 2018 15:30 EET
The capital add-on for Garantia has been confirmed
The Financial Supervisory Authority confirmed the capital solvency increase, or capital add-on, to EUR 17.8 million for Garantia Insurance Company Ltd, which, accordingly, increases the capital requirement of the Taaleri Group on the Financial and Insurance Group (RAVA) with the same amount. The solvency of Garantia and Taaleri RAVA Conglomerate remains strong even after the increase in the capital requirement.
As a financial conglomerate, Taaleri Group publishes its own funds and capital adequacy in accordance with the capital adequacy regulations for financial and insurance conglomerates.
The RAVA conglomerates own funds amounted to EUR 96.1 million at the end of December 2017, with the minimum requirement being EUR 38.3 million before the additional capital requirement and EUR 56.1 million (pro forma) with the additional capital requirement. The Conglomerates capital adequacy was EUR 57.9 million before the additional capital requirement and EUR 40.1 million after the additional capital requirement. The capital adequacy ratio was 251.2 per cent before the supplementary capital requirement and 171.4 per cent after the supplementary capital requirement, with the minimum requirement being 100 per cent.
Garantia's own funds amounted to totaled EUR 106.8 million at the end of December 2017. The solvency capital requirement excluding the capital add-on totaled EUR 27.1 million and including the capital add-on EUR 44.9 million (pro forma). The solvency ratio, i.e. the ratio of own fund to the solvency capital requirement excluding the capital add-on totaled 394 per cent and including the capital add-on 238 per cent.
Financial Supervisory Authority states that the risk profile of Garantia's non-life underwriting risk and counterparty default risk differs from the underlying assumptions in the standard formula for the solvency capital requirement calculation. In addition, the Financial Supervisory Authority notes that the requirement to use the internal model is not appropriate for Garantia.
The increase in the capital requirement is valid until further notice. The Financial Supervisory Authority will assess the amount at least once a year.
Juhani Elomaa, CEO, Taaleri Plc, +358 40 778 9020, email@example.com
Vesa Aho, CEO, Garantia Insurance Company Ltd, +358 50 343 1841, firstname.lastname@example.org
Taaleri in brief
Taaleri is a Finnish financial service company, whose parent company Taaleri Plc is listed on Nasdaq Helsinki's main market. The Taaleri Group comprises three business areas: Wealth Management, Financing, and Energy. Taaleri provides services to institutional investors, companies and private individuals. The Groups operational subsidiaries are: Taaleri Wealth Management Ltd and its subsidiaries, Taaleri Private Equity Funds Group, Taaleri Investments Group, Taaleri Energia Oy Group and Garantia Insurance Company Ltd. In addition, Taaleri has associated companies Fellow Finance Plc, which offers peer-to-peer lending services and Ficolo Oy developing data centers.
At the end of December 2017, Taaleri had assets under management totaling 5.6 billion euro and 4,400 wealth management customers. Taaleri Plc has some 3,900 shareholders. Taaleri's operations are supervised by the Finnish Financial Supervisory Authority.
More information about our company and services:
Sophie Jolly, Head of Communications and IR, email@example.com, tel. +358 40 828 7317