Insurance premiums are paid in advance, which means that there is a certain time interval between premium payments and claims payments. This results in the need for Solid Försäkring to invest insurance premiums.
We have prepared guidelines for capital management that describe asset management and capital planning. Solid’s finance function is responsible for asset management, and its duties include ensuring that suitable calculations and adjustments are made for determining solvency capital requirements and capital base as well as identifying and documenting different cases of the distribution of own-fund items. The company is also to follow a medium-term capital plan that includes taking into account planned capital issues, the maturity of own-fund items and the results of the forecasts that were made using the company’s own risk and solvency assessment (“ORSA“). The capital plan is to be checked by the Board. Solid’s Risk control function is to ensure that the follow-up and control of guidelines for asset management takes place, and compliance with guidelines.
A large part of Solid’s investment portfolio comprises interest-bearing securities and the majority of the investment assets bear variable interest. A minor part of the portfolio comprises equities in which the majority of the investment portfolio is listed in SEK. The asset management function can also make use of derivatives to reduce market and currency risk.