Formulas for key figures and 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

Core Tier 1 ratio, %	=	Total Tier 1 capital, excl. hybrid capital and shortfall of Tier 2 capital covered by hybrid capital	x 8
		Total minimum capital requirement

*Common Equity Tier 1 capital ratio, % (CET1))**	=	Common Equity Tier 1 (CET1)	x 100
		Total risk exposure amount

*) Common Equity Tier 1 capital (CET1) as defined in Article 26 of EU Regulation 575/2103 and total risk exposure amount as defined in Article 92.

Tier 1 ratio, %	=	Tier 1 capital	x 8
		Total minimum capital requirement

Capital adequacy ratio, %	=	Total capital	x 8
		Total minimum capital requirement

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

In addition, the following key ratios appear elsewhere in the Report by the Executive Board:

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	=	Claims excl. loss adjustment expenses and changes in calculation bases	x 100
(excl. unwinding of discount), %		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
Life insurance:

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