Since insurance premiums are paid in advance, a time interval arises between premium payments and claims payments, which creates a need for Industria insurance joint-stock companies to invest these funds in an efficient manner.

Industria Försäkringsaktiebolag has established clear guidelines for capital management, which include asset management and capital planning. The company’s financial function is responsible for asset management and ensures that relevant calculations and adjustments are made when determining solvency capital requirements and capital base. Furthermore, various cases of capital distribution are identified and documented. The company follows a capital plan in the medium term that takes into account factors such as planned capital issues, maturities for capital base items and results from the company’s own risk and solvency assessment (ORSA). The capital plan is reviewed and approved by the board, while the risk control function is responsible for ensuring that the guidelines for asset management are followed and followed up.

A significant proportion of Industria Försäkringsaktiebolag’s investment portfolio consists of interest-bearing securities, where the majority of assets have variable interest rates. A smaller share is made up of shares, with a predominant part of the investments quoted in Swedish kronor. The asset management function also has the opportunity to use derivative instruments to manage market and currency risk.