A good year for Suomi Mutual

Suomi Mutual Life Assurance Company (Suomi Mutual) manages insurance and investment portfolios for the benefit of its customers. The year 2006 was good for the company. For this reason, the company will distribute substantial additional benefits to its policyholders and extend the refund of solvency capital to apply to insurances other than those already entitled to special additional benefits.

Suomi Mutual will release some of its solvency capital, as it no longer underwrites new insurances, and hence its need for solvency capital will gradually decrease. As a mutual company with no shareholders, it distributes the solvency capital released to its policyholders in the form of special and other additional benefits.

Old policies are entitled to special additional benefits because of a previously declared conditional promise. Old policies refer to policies that were in force at Suomi Mutual on July 1, 1997 and remain in force to date. At its highest, the annual return on old insurances is over 18%.

Due to favourable development, the company wanted to extend the solvency refunds during the financial year to the entire insurance portfolio to allow as many policies as possible to receive the refunds during their validity. As a rule, the customer bonus to be given for all insurance savings for 2006, was raised by 2 percentage points.

Decisions on special additional benefits and customer bonuses are made annually. They may vary significantly from year to year, as changes in the investment market affect the company's risk status.