Strategy

Strategy

Mandatum’s strategy is to focus on capital-light business that enables growth while the capital-heavy with-profit business is being reduced in a planned manner.

Above all, Mandatum’s strategy focuses on developing the company’s product and service portfolios and integrating them with one another. This makes it possible to use synergy benefits, and customers can gain further benefits in the insurance and investment management value chain.  

Significant growth opportunities have been identified especially in capital-light pension, savings and risk insurance products that generate fee income. Furthermore, significant growth potential has been identified in institutional wealth management and asset management business. 

Mandatum’s strategy is based on the company’s significant market position, strong brand, targeted sales activities, investment track record and extremely qualified and professional personnel. Mandatum’s management has solid experience in the sector, and it is supported by an extensive group of highly skilled professionals. The company’s employees play a key role in both day-to-day business and in achieving the future strategy. 

The company’s strategy focuses on driving growth and stable distribution of capital. For capital-light segments, Mandatum’s strategy is still to scale the assets under management and increase the fee generating business. In the with-profit segment, Mandatum’s strategy is to generate stable capital and distribute capital. 

Mandatum supports the growth strategies of its different customer segments through cross-selling opportunities between segments. The company focuses on growing its capital-light business and generating stable capital from its contracting with-profit business. 

The growth strategy is also supported by structural growth opportunities in Finland and the Nordics. The company’s strategy targets further expansion, especially in Sweden and Denmark. Furthermore, its goal is to study ancillary European markets and expand the company’s product offering. 

 

Customer segment-specific strategy  

Mandatum offers its services to three customer segments: corporate clients, private customers and institutional and wealth management customers.  

Mandatum is a market leader in the corporate segment where the company has large cap, mid cap and small cap companies and entrepreneurs as customers. The company offers corporate clients unit-linked group pension insurance, individual pension insurance, group risk insurance, individual risk insurance, and reward and compensation, personnel fund and pension fund services.  

A significant standing in the corporate segment means having a broad point of contact with Finnish corporate decision-makers. This enables the cross-selling of products and services as part of managing and expanding the overall client relationship.  

Companies and corporate decision-makers with excess wealth are also potential wealth management customers. For example, currently, around 70 per cent of Mandatum’s wealth management customers have some kind of business connection. According to the management’s assessment, the corporate segment enables Mandatum’s access to significant new and stable customer flows.  

Private customers receive individual personal risk insurance covering death, unemployment and serious illness, and digital wealth management and investment solutions. Furthermore, Mandatum offers its private customers access to more than 70,000 investment instruments through Saxo Bank’s trading platforms.  

Insurance and investment solutions designed for private customers are mainly distributed through the partnership with Danske Bank and directly through Mandatum’s telesales and digital channels. Mandatum’s main goal in the private customer segment is to further strengthen key distribution partnerships.  

In the institutional and wealth management customer segment, Mandatum’s target is to increase the amount of managed assets, strengthen its market position and expand the product offering. Mandatum’s goal is to replicate the company’s Finnish success story and expand to other Nordic countries, especially Sweden and Denmark.  

 

Learn more about Mandatum’s corporate structure

Learn more about Mandatum’s financial targets

1.10.2023