Finnish insurer Sampo said Wednesday it has applied to extend its internal risk-assessment model to include its newly merged Danish insurer Topdanmark, a move it estimates could free up capital.
The application to the Swedish Financial Supervisory Authority follows the legal merger of Sampo's main property-and-casualty subsidiary, If P&C Insurance, with Topdanmark, which was finalized on Tuesday, according to the company.
By extending its so-called Partial Internal Model, a bespoke method for calculating capital requirements, Sampo aims to reduce its group-level solvency capital requirement—the amount of funds it must hold to cover unexpected losses—by an estimated 60 million to 90 million euros.
The company said it expects the approval process with the Swedish regulator to be completed in late 2025 or early 2026 at the latest.
The move is a final step in integrating Topdanmark after Sampo took full ownership, cementing its strategy to focus on being a leading property-and-casualty insurer in the Nordic region.
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