28 Capital Management

The Group’s objectives when managing capital are as follows: to comply with the regulatory capital requirements, to define and manage economic capital and to fulfill the company’s target on rating capital. The company also actively manages the composition and quality of the capital to continuously optimise its capital structure and interest cover ratio.

Regulatory requirements

In accordance with the federal act on the supervision of insurance companies and corresponding decree, the Swiss Life Group reports as an insurance group to the Swiss Financial Market Supervisory Authority (FINMA). The reporting covers risk management as outlined in note 5, Group Solvency I, legal structure, management organisation and intragroup transactions. The reporting is submitted on an ad-hoc, monthly, half-yearly or yearly basis depending on the topic and is reviewed on a yearly basis by the statutory auditor according to the legal requirements. As at 31 December 2011 and 2010, the Group was compliant with the legal requirements.

In addition to the Group’s solvency requirements, the Solvency I and other statutory constraints at local level are considered to address the specific situation of each country and business unit.

 

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