Formulas for key figures and ratios 

Formulas for key ratios


Return on equity (ROE), % = Profit for the financial year x 100

Equity capital (average of the beginning and end of year)

Return on equity at fair value, % = Total comprehensive income for the financial year x 100

Equity capital (average of the beginning and end of year)

Return on assets (ROA), % = Profit for the financial year x 100

Balance sheet total (average of the beginning and end of year)

Equity ratio, % = Equity capital x 100

Balance sheet total

Cost/income ratio, % = Personnel costs + other administrative expenses + other operating expenses x 100

Net interest income + net income from Non-life Insurance operations + net income from Life Insurance + net commissions and fees + net trading income + net investment income + other operating income + share of associates’ profits/losses

Tier 1 capital ratio, % = Tier 1 capital (Tier 1) x 100

Total risk exposure

Common Equity Tier 1 capital ratio, % (CET1)*) = Common Equity Tier 1 (CET1) x 100

Total risk exposure
*) Common Equity Tier 1 capital (CET1) as defined in Article 26 of EU Regulation 575/2013 and total risk exposure amount as defined in Article 92.

Capital adequacy ratio, % = Total capital x 100

Total risk exposure

Capital adequacy ratio under the Act on the Supervision of Financial and Insurance Conglomerates = Conglomerate’s total capital base x 100

Conglomerate’s total minimum capital base

Return on economic capital, % = Earnings + customer bonuses after tax (12-month rolling) x 100

Average economic capital


Non-life insurance:

Combined ratio Loss ratio + expense ratio
(excl. unwinding of discount), % Risk ratio + cost ratio

Loss ratio (excl. unwinding of discount), % = Claims and loss adjustment expenses x 100

Net insurance premium revenue

Expense ratio, % = Operating expenses + amortisation/adjustment of intangible assets related to company acquisition x 100

Net insurance premium revenue

Risk ratio (excl. unwinding of discount), % = Claims excl. loss adjustment expenses x 100

Net insurance premium revenue

Operating combined ratio Operating loss ratio + operating expense ratio
  Operating risk ratio + operating cost ratio

Operating risk ratio
(excl. unwinding of discount), %
= Claims excl. loss adjustment expenses and changes in calculation bases x 100

Insurance premium revenue, excl. net changes in calculation bases

Operating loss ratio, % = Claims incurred excl. changes in calculation bases x 100

Insurance premium revenue, excl. net changes in calculation bases

Operating expense ratio, % = Operating expenses x 100

Insurance premium revenue, excl. net changes in calculation bases

Cost ratio, % = Operating expenses and loss adjustment expenses x 100

Net insurance premium revenue

Operating cost ratio, % = Operating expenses and loss adjustment expenses x 100

Net insurance premium revenue, excl. net changes in calculation bases

Solvency ratio, % = Solvency capital x 100

Insurance premium revenue


Solvency ratio, %*) Capital base x 100

Solvency capital requirement (SCR)
*) According to the Solvency II draft

Life Insurance:

Operating cost ratio, % = Operating expenses before change in deferred acquisitions costs + loss adjustment expenses x 100

Total expense loadings