Risk and capital management
The new Basel II rules on capital adequacy came into effect on 1 January 2007, comprising Alm. Brand Bank and Alm. Brand A/S. In the Executive Order on Capital Adequacy issued by the Danish Financial Supervisory Authority on the basis of the Basel II rules, requirements for calculating a reasonable capital base and determining individual capital adequacy requirements have been considerably tightened. As Alm. Brand A/S is subject to the new rules, the subsidiaries of the Alm. Brand Forsikring Group are also indirectly subject to them. The individual capital adequacy requirement should be reported for the first time in the interim financial statements for 2007.
New Danish regulations relating to individual capital adequacy have also been introduced in the insurance area. They arise out of the forthcoming European Solvency II regulations for the insurance area. These regulations came into force on 1 July 2007, for which reason reporting for the insurance group and the underlying subsidiaries coincides with the reporting related to the financial statements for 2007.
Managing the Alm. Brand Group's risks is a significant focus area for Management as an uncontrolled development in various risks may affect the Group's performance and capital adequacy and thereby materially impact the future business potential. The Alm. Brand Group accepts a range of risks, which are the various business risks related to operating the different business areas as well as the more uniform financial risks related to handling the Group's cash flow and investment strategy.
This risk report, Risk and Capital Management 2009 describes the Alm. Brand Group's organisation and processes relating to identification and management of risks. Please also refer to the latest of Alm. Brand's annual reports.
The report is a PDF-file and can be read by using Adobe Acrobat Reader which is free and can be downloaded here.