Mandatum Oyj : Financial statements 2025 (mandatum group annual report 2025)

About this update from Mandatum Oyj

ANNUAL REPORT 2025 Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report CONTENTS Mandatum in brief ........................................................................................................ 3 CAPITAL AND SOLVENCY .................................................................................. 23 Mandatum as an investment .................................................................................... 4 REPORT OF THE BOARD OF DIRECTORS .................................................... 34 Key figures...................................................................................................................... 6 Sustainability Statement .................................................................................. 65 CEO's review.................................................................................................................. 7 GROUP'S IFRS FINANCIAL STATEMENTS .................................................... 139 Highlights ........................................................................................................................ 9 MANDATUM PLC'S FINANCIAL STATEMENTS ............................................ 236 Operating environment.............................................................................................. 11 Auditor's Report ....................................................................................................... 244 Strategy ........................................................................................................................... 12 Assurance Report on the Sustainability Statement ..................................... 249 Business areas 15 Institutional and wealth management 15 Corporate clients 17 Retail clients 19 With-profit business 20 Sustainability 21 Independent Auditor's Report on the ESEF Financial Statements of Mandatum Oyj 252 2 CORPORATE GOVERNANCE STATEMENT 255 REMUNERATION REPORT 278 A separate Sustainability Review has been published as part of Mandatum's annual reporting for 2025. The reporting is complemented by Mandatum's solvency and financial condition reports for 2025. All reports are available at mandatum.fi/en/year2025 . This PDF report is a voluntary publication and it is not an xHTML document compliant with the ESEF (European Single Electronic Format) regulation. Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 3 ‌Mandatum in brief ADDED VALUE THROUGH EXPERTISE IN ASSET AND WEALTH MANAGEMENT AND LIFE INSURANCE Mandatum is a major financial services provider, combining expertise in asset and wealth management and life insurance. Clients include institutional investors, companies and private individuals. Mandatum offers a broad range of services encompassing asset and wealth management, compensation and rewards, supplementary pensions and personal risk insurance. Skilled personnel, a strong brand and a proven investment track record are at the centre of Mandatum's success. The company has been listed on Nasdaq Helsinki since 2023. PRODUCTS AND SERVICES Private wealth management and asset management Supplementary pension solutions Personal risk insurance Personnel funds Compensation and rewards consultation Mandatum Trader online trading platform VALUES Benefit the client By far the most active Straight talk As one team Daring to be different Will to win OFFICES AND KEY MARKETS Headquarters and 10 offices in Finland 1 in Sweden 1 in Luxembourg In addition to Finland, Mandatum has institutional asset management clients in other Nordic countries, especially in Sweden and Denmark, and in Central Europe. Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 4 ‌Mandatum as an investment WHY INVEST IN MANDATUM Mandatum has ambitious growth targets and it aims to become the fastest - growing asset and wealth manager in the Nordics. STRONG GROWTH AMBITIONS The target is above 10% growth (CAGR) in profit before taxes for the capital - light business during 2025-2028. Mandatum targets profitable growth in the capital-light business, particularly in asset and wealth management and corporate business, which are core to its strategy. During the strategy period 2025-2028, growth is sought from: International institutional asset management, where strong growth ambitions are supported by strong investment expertise and award - winning fixed income products. Private wealth management with an aim to double the market share. Corporate business, where growth continues to be pursued across all products by leveraging an extensive contact network and increasing sales resources. SIGNIFICANT PROFITABILITY IMPROVEMENT AHEAD The target is above 20% return on equity (ROE) by the end of 2028. Mandatum's key profitability metrics is return on equity (ROE), for which the company targets a pronounced step - up. The drivers of Mandatum's ROE are: Earnings growth in the capital-light business which is supported by growth in business volumes and further strengthening of operational leverage. The capital released from the runoff of the with-profit insurance portfolio, as this business ties up a significant amount of capital and therefore weighs on return on equity. ATTRACTIVE CAPITAL DISTRIBUTION The target is cumulative shareholder distribution of more than EUR 1 billion for years 2025-2028 and the solvency margin target range is 160-180% by the end of 2028. Mandatum aims to be an attractive dividend payer - now and in the future. Mandatum's unique balance sheet position, and especially the capital released from the run-off with - profit business, enables an attractive shareholder distribution. The company's capacity for shareholder distribution is driven by: Strong solvency position, which was 169 per cent 1 at the end of 2025. Distributable funds which are supported by the capital release from the run-off of the with-profit business and profitable earnings growth of the capital-light business. A STRONG BRAND AND HIGH CUSTOMER AND EMPLOYEE SATISFACTION What sets Mandatum apart from its competitors is its strong brand, supported by the competitive advantage created by high customer and employee satisfaction. A strong and reputable brand serves as a distinctive competitive advantage, supports sales particularly in private wealth management and creates added value compared to competitors. Customer satisfaction is demonstrably high across all business areas, and Mandatum has, among other recognitions, been ranked the best private wealth manager in Finland. 2 Skilled and professional personnel are essential to Mandatum's success. The company has notably satisfied employees and has, for example, received the Great Place to Work certification numerous times. Solvency margin excluding transitional measure Kantar Prospera Private Banking 2025 Finland customer study Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 5 MANDATUM AS AN INVESTMENT Mandatum has been listed on Nasdaq Helsinki since October 2023. At the end of 2025, Mandatum had over 215,000 shareholders and was the third most widely held company on the Helsinki Stock Exchange. The market capitalisation of Mandatum plc as at the end of 2025 was approximately EUR 3.5 (2.3) billion and the closing price of the MANTA share was EUR 6.88 (4.48). The share traded at a high of EUR 6.88 (4.61) and a low of EUR 4.40 (3.84) during the year. A dividend of EUR 332 million for 2024 was paid in spring 2025. Including the paid dividend, the total shareholder return was 72 per cent in 2025. The total shareholder return since listing, from October 2023 onwards, has been 128 per cent. Market capitalisation on 31 Dec 2025 EUR 3.5 bn Number of shareholders on 31 Dec 2025, over 215,000 Total shareholder return in 2025 72 % Earnings per share in 2025 EUR 0.31 Organic capital generation per share in 2025 EUR 0.60 ORGANIC CAPITAL GENERATION - WHY IS IT IMPORTANT FOR OUR SHAREHOLDERS Organic capital generation (OCG) is an indicator which illustrates the change in own funds resulting from Mandatum's business operations and solvency capital requirement; in practice, this shows how the company's capacity to pay out dividends has changed during the reporting period. Organic capital generation is driven by: Own funds, which have increased as a result of good results performance A declining solvency capital requirement mainly due to the runoff of the with-profit portfolio Success in indices in 2025 Mandatum was included in the OMXH25 ESG Responsible TM index, which covers the most traded stocks on the Helsinki Stock Exchange with an emphasis on sustainability, on 3 February 2025. The index follows certain ESG criteria based on, among others, the Sustainalytics rating. The company's Sustainalytics ESG rating is positioned very well in the low ESG risk category. In addition, Mandatum was included in the STOXX Europe 600 index, which covers the 600 largest companies in Europe, on 24 March 2025. Mandatum's total shareholder return, dividends included, during 2023-2025 % 150 100 50 0 10/2023 2024 2025 12/2025 Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 6 ‌KEY FIGURES Client assets under management (AuM) on 31 December 2025 EUR 15.3 billion (14.0) Net flow Jan-Dec 2025 EUR 723 million (983) Dividend proposal for 2025 EUR 427 million Solvency ratio 1 on 31 December 2025 169 % (193) Market value on 31 December 2025 EUR 3.5 billion (2.3) Shareholders on 31 December 2025, over 215,000 Private clients approx. 250,000 Corporate and institutional clients approx. 20,000 Employees approx. 630 1) Excluding transitional measure Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 7 ‌CEO's review A YEAR OF PROFITABLE GROWTH Mandatum's CEO Petri Niemisvirta - What stands out most from 2025? The year was marked by many successes. I would like to highlight the work around refining our strategy, the success of our international asset management business, and a significant improvement in cost efficiency. What developments took place around the strategy? The work undertaken to further sharpen our strategy had a significant impact on the year in many respects. In June, we hosted Mandatum's first Capital Markets Day, at which we announced new financial targets and outlined clear strategic priorities for the period 2025-2028. Mandatum pursues profitable growth in the capital-light business, while the with-profit business continues its planned contraction. During this strategy period, our focus is on strengthening international institutional asset management; accelerating the growth of private wealth management in Finland; leveraging corporate client relationships to support business growth; and improving operational efficiency. We made clear and tangible progress across all of these areas during the year. In the autumn, Mandatum's entire organisation engaged deeply in the strategy, translating our objectives into clear direction for every business area, team and individual. The level of energy and commitment was inspiring to witness. I am confident that this shared effort will support us throughout the strategy period. How did the international expansion of asset management business progress? International expansion was once again a major success in 2025. Growth in institutional asset management continued at a strong pace, particularly in Sweden, and we also gained our first new clients in Central Europe. As our market recognition increases, it will further contribute to the achievement of our growth objectives. Our international success is firmly built on high-quality investment products. Competing with large global players requires top-tier expertise and consistently strong performance. Our position in this regard is, for example, reflected in the numerous awards we received during the year. Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 8 You also mentioned cost efficiency. What does this mean in practice? We have worked systematically over the past years to improve our cost efficiency, and the results are clearly visible. The cost/ income ratio related to client assets under management improved by nine percentage points compared with the previous year, driven both by growth in client assets under management and a simultaneous reduction in expenses. Our scalable business model allows us to increase revenues without a corresponding rise in costs, providing a solid platform for future growth. How did private wealth management in Finland perform, and which services were most popular? Private wealth management also delivered an excellent year. Client assets under management increased by 19 per cent compared with the previous year, and we gained market share. High client satisfaction is reflected in Mandatum being ranked the best private banking provider in the Kantar Prospera Private Banking 2025 Finland survey. Discretionary mandates were particularly popular. I believe their appeal lies in a personal and proactive service model, combined with Mandatum's strong portfolio management expertise. Clients can confidently entrust investment decisions to our professionals. What would you highlight in the corporate and retail clients business areas? In corporate clients, Mandatum is the market leader in supplementary pensions and in personnel funds, which recorded strong net flow growth during the year. Cooperation between wealth management and the corporate client business, which is strategically important for Mandatum, continued to work extremely well. Within our retail clients business, we initiated a partnership with Pohjantähti in the distribution of personal risk insurance, and the collaboration started off strongly. How did Mandatum's financial performance develop in 2025? Mandatum achieved strong and profitable growth during the year. Even if the overall result declined compared with the previous year, its quality remained high. The growth of capital-light profit, which is strategically important for Mandatum, accelerated particularly towards the end of the year. This demonstrates that we are focusing on the right priorities: profitable growth in institutional and wealth management, corporate clients, and retail clients. Overall, client assets under management increased to EUR 15.3 billion, and solvency remained at a strong level. One of our new financial targets is a cumulative shareholder payout of over EUR 1 billion for this strategy period. We are progressing well towards this goal. The Board of Directors has decided to propose to the Annual General Meeting a dividend of EUR 0.85 per share, corresponding to a total dividend distribution of approximately EUR 427 million for 2025. As I have stated before, it is important for Mandatum to be a good dividend payer, both now and in the future. What role does sustainability play at Mandatum, and how was this reflected in 2025? For Mandatum, sustainability first and foremost means active measures that strengthen the company's success in the long run. Our sustainability efforts were reflected in strong performance across a range of external ESG assessments during the year. In spring 2025, Mandatum was included in the OMXH25 ESG Responsible™ Index. Our ESG ratings remained strong across the board: Sustainalytics assessed Mandatum as a low-risk company with improved scores, MSCI maintained its AA rating, and ISS ESG once again awarded Mandatum the Prime status. We also performed well in the PRI responsible investment assessment and in the GRESB assessment of real estate investments. Mandatum received the Great Place to Work certification. What does this indicate and what is the connection between employee and customer satisfaction? Successful business is built on both engaged employees and satisfied customers, and we therefore monitor employee and customer satisfaction closely. In 2025, Mandatum received two employee experience certifications: the Siqni Future Workplaces certification for the fourth consecutive year and the Great Place to Work certification for 2025-2026. These recognitions reflect Mandatum's strong corporate culture and high levels of employee engagement. I firmly believe that a positive employee experience is reflected in high customer satisfaction. This was also evident in our results, with a further improved Net Promoter Score (NPS) reaching 79.7 for the full year. You have highlighted several successes, but where was there room for improvement in 2025? Although sales of personal risk insurance were at a good level, we did not fully reach our ambitious targets. We will continue to develop this business area with determination. How is Mandatum positioned for 2026? Mandatum is well positioned both for 2026 and for achieving its longer-term strategic objectives. We aim to become the fastest-growing asset and wealth manager in the Nordics, and we are firmly progressing towards this goal. Finally, I would like to extend my warm thanks to Mandatum's employees, clients, partners and shareholders for the past year. Year 2025 ‌HIGHLIGHTS Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 9 FUTURE WORKPLACES CERTIFICATE FOR THE FOURTH TIME Mandatum received the Future Workplaces certificate for the fourth consecutive year, based on the Siqni employee survey. The certificate is awarded to companies whose corporate culture is driven by an exceptionally deep understanding of their employees. Q1 Q2 INCLUDED IN THE OMXH25 ESG RESPONSIBLE™ INDEX Mandatum was included in the OMXH25 ESG Responsible™ Index on 3 February 2025. The index tracks the most traded shares listed on Nasdaq Helsinki that meet specific ESG criteria. NORDIC HIGH YIELD FUND AWARDED BEST IN EUROPE FOR THE THIRD TIME The LSEG Lipper Fund Awards 2025 once again recognised Mandatum's investment fund as the best in Europe in two categories, awarding it as 'Best Fund over 3 years' and 'Best Fund over 5 years' in the Bond Europe High Yield category. JANNE SARVIKIVI TO LEAD INSTITUTIONAL AND WEALTH MANAGEMENT BUSINESS Sarvikivi started as the EVP, Asset and Wealth Management and a member of the Mandatum Group's Management Team on 12 May 2025. He has extensive experience from demanding leadership positions within capital markets. INTERIM TARGETS IN PURSUIT OF NET ZERO EMISSIONS Mandatum joined the Net Zero Asset Managers initiative in 2024, and committed to achieving net-zero emissions from its investments by 2050. The company set the first interim targets for the emissions from its assets under management. The aim is to reduce the carbon intensity of its direct listed equities and corporate bonds by 75 per cent by 2030, compared to the 2020 baseline. LAUNCH OF NEW EUROPEAN HIGH YIELD FUND Mandatum expanded its UCITS fund portfolio by launching a new European High Yield Total Return Fund. The new fund complements the offering in the fixed income asset class. FIRST CAPITAL MARKETS DAY AND NEW FINANCIAL TARGETS Mandatum organised a Capital Markets Day on 4 June 2025, and announced new financial targets as part of its strategy, reinforcing its commitment to growth within the capital-light business (institutional and wealth management, corporate and retail) and to creating shareholder value over the strategy period 2025-2028. MANDATUM AND POHJANTÄHTI STARTED COLLABORATION IN PERSONAL RISK INSURANCES Mandatum and Pohjantähti agreed on collaboration, through which Pohjantähti started to act as Mandatum's partner in offering personal risk insurances to cover critical illness, short-term and long-term disability and death, as of September 2025. Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report Q3 Q4 INTERNATIONAL EXPANSION CONTINUED, SALES UNIT TO LUXEMBOURG FIXED INCOME STRATEGY WINS PRESTIGIOUS SCOPE AWARD Mandatum's Fixed Income Total Return BEST PRIVATE BANKING PROVIDER IN KANTAR PROSPERA SURVEY GREAT PLACE TO WORK CERTIFICATE Mandatum received the Great Place to The strong growth of the international asset management business continued throughout the year. Mandatum established a new sales unit in Luxembourg to be closer to its Fund won the Scope Award 2026, for 'Best Bond Global Aggregate EUR', standing out among 119 funds for its strong, risk-adjusted performance and agile investment approach. Mandatum was selected as Finland's best private banking provider in Kantar Prospera's Private Banking 2025 Finland survey. The study shows that clients particularly value Mandatum for its Work certification for 2025-2026. The certification is based on employee evaluations and serves as recognition that the company has satisfied employees and a strong work culture. European client base. SUCCESS IN THE PRI service mindedness, strong brand, and investment track record. MANDATUM AND MORGAN SUCCESS IN THE GRESB ASSESSMENT ASSESSMENT Mandatum once again achieved STANLEY REAL ESTATE INVESTING FORMED A JOINT VENTURE Mandatum's real estate portfolios achieved outstanding results in the international Global Real Estate Sustainability Benchmark (GRESB) assessment, which measures the sustainability and performance of real excellent results in the UN PRI (Principles for Responsible Investment) assessment 1 . The company participated in twelve evaluated areas and received the highest star rating in seven of them. The joint venture invests in residential properties in the Helsinki Metropolitan Area. Its seed portfolio consisted of approximately 360 units across seven high - quality residential properties, four of which Mandatum sold to the joint venture. estate investments. 10 1) PRI Assessment Report and PRI Transparency Report Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 11 ‌Operating environment KEY MARKETS CONTINUE TO GROW Mandatum is a financial services provider that operates both in the asset and the wealth management and insurance markets. Its wide range of services includes asset and wealth management, pension plans, compensation and rewards, as well as personal risk insurance. The key markets are expected to grow over the next years. Mandatum has its roots in Finland, where it offers the full variety of its services. In Finland, the company serves some 250,000 retail clients and around 20,000 companies. The asset management business is international and has expanded especially to Sweden, but also to other Nordic countries and into Central Europe. Asset management market in the Nordics 2 AuM (EUR billion) +8 % 1 1,500 1,000 Finland MARKET GROWTH SUPPORTS MANDATUM'S GROWTH OBJECTIVES The key markets for Mandatum in asset management, private wealth management, as well as corporate pension and personal risk insurance have developed favourably in recent years, and their growth is expected to remain strong in the coming years. Private wealth management market in Finland 2 AuM (EUR billion) +6 % 1 200 100 The value of the Nordic asset management market already exceeds EUR 1,000 billion and it is expected to grow at a compound annual growth rate (CAGR) of around 8 per cent in the coming years. In Finland, the private wealth management market CAGR is expected to be around 6 per cent. Factors influencing this development include the growth of Nordic economies, creation of new wealth by the corporate Corporate unit-linked pension and corporate personal insurance market in Finland 2 Gross written premium (EUR million) +5 % 1 600 400 sector, and the transfer of accumulated wealth to the next generations. In the corporate unit-linked pension insurance and corporate personal risk insurance market, the CAGR for premiums written is expected to be around 5 per cent in the coming years. Factors influencing the pension insurance market growth include the ageing of Finland's population and the weakening of social security. As a result, the need for individuals to supplement their statutory pensions with voluntary pension savings has grown. Companies have also assumed a more prominent role in supplementing employees' insurance cover, and the popularity of insurance benefits offered as employee benefits has increased in Finland in recent years. The CAGR for corporate personal risk insurance market (including life insurance and cover for 500 2023 2024 2025E 2026E 2027E 2028E 0 Sweden Denmark 2023 2024 2025E 2026E 2027E 2028E Norway 0 Finland 200 2023 2024 2025E 2026E 2027E 2028E 0 Finland serious illness and disability) is expected to be around 7 per cent in the coming years. Growth of the Nordic economies • Creation of new wealth, especially through corporations Growth in the number of wealthy individuals Weakening of pension and social security Read about the market environment in 2025 in the Report of the Board of Directors . Corporate sector's role in providing economic security of employees Compound Annual Growth Rate (CAGR) Based on third-party market study and company estimates Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 12 ‌Strategy GROWTH FROM CAPITAL-LIGHT BUSINESS Mandatum aims to become the fastest-growing Nordic asset and wealth manager. During this strategy period, the company's focus is on expanding the foothold of asset management internationally, accelerating the growth of private wealth management in Finland, increasing sales by leveraging excellent corporate client relationships, and improving operational efficiency. Mandatum has divided its business into four areas: institutional and wealth management, corporate clients, retail clients, and with-profit business. The strategy is to grow profitably in the capital-light business areas, i.e. in institutional and wealth management, corporate clients and retail clients, while scaling down the more capital-heavy with-profit business in a planned and predictable manner. This strategy has been in place since the early 2000s, when sales of new with-profit pension insurance policies were discontinued and the company started building growth in the capital-light business areas. While with-profit business is profitable, due to its high capital requirement, the return on capital remains relatively low. For this reason, Mandatum's focus is now on capital-light business. As the with-profit portfolio declines, capital is released. This, together with the Group's strong solvency position and the growth of capital-light business, forms the basis of Mandatum's dividend capacity. VISION AND STRATEGIC PRIORITIES Mandatum's growth objectives are ambitious: its vision is to become the fastest-growing Nordic asset and wealth manager with optimised growth in Finnish life and pension. During the strategy period of 2025-2028, the focus is on expanding the foothold in asset management internationally, especially in the Nordics, accelerating the growth of wealth management in Finland, leveraging corporate client relations for growth, and improving operational efficiency. Mandatum is well-positioned to achieve its goals: the company has extensive experience and a proven track record in investment operations, a strong brand, high-quality products, and satisfied customers and employees. FINANCIAL TARGETS In June 2025, Mandatum announced new financial targets as part of its strategy, reinforcing its commitment to growth within the capital-light business and to shareholder value creation. The financial targets for 2025-2028 are: Return on equity (ROE): above 20% Capital-light profit before taxes: Compound annual growth rate (CAGR) above 10% Solvency margin: target range of 160-180% with cumulative shareholder payouts exceeding EUR 1 billion. STRATEGY PROGRESS IN 2025 In line with the strategy, the capital - light business continued to grow in 2025, while the with-profit business contracted. Capital - light profit before taxes increased by 5 per cent year - on - year. Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 13 Throughout the year, Mandatum focused both on accelerating sales and enhancing operational efficiency. Sales resources were strengthened both in the institutional and wealth management and the corporate client business areas, and sales operations were further systematised. International growth remained strong, particularly in Sweden, and new clients were acquired in Central Europe. To support the expanding client base, a new sales unit was established in Luxembourg. In the retail client business area, sales benefitted from the newly launched partnership with Pohjantähti Mutual Insurance Company. Operational efficiency improvements were pursued systematically throughout the year. Lower expenses contributed to an improved cost/income ratio related to client assets under management, which improved by 9 percentage points during the year. Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report CAPITAL-LIGHT BUSINESS WITH-PROFIT BUSINESS INSTITUTIONAL AND WEALTH MANAGEMENT CORPORATE CLIENTS RETAIL CLIENTS CLIENTS PRODUCTS AND SERVICES STRATEGIC PRIORITIES 2025-2028 Institutional investors in Finland, other Nordic countries and Central Europe High-net-worth individuals in Finland Large and medium-sized companies as well as smaller companies and entrepreneurs in Finland Finnish retail clients, the majority of whom are served through partnerships, in particular via Danske Bank and Pohjantähti Finnish retail and corporate clients having with-profit pension insurance A wide range of asset and wealth management services; diverse investment solutions in different asset classes, such as fixed income, alternatives and equities. Offering includes: investment funds discretionary wealth management services Mandatum Trader online trading platform Comprehensive compensation and reward services, including: personnel funds personal risk insurance policies (life insurance and cover for serious illness and disability) supplementary pensions Investment services to companies Loan insurance for housing loans Unit-linked investment insurance Capital redemption policies Personal risk insurance policies (life insurance and cover for serious illness and disability) With-profit insurance policies, i.e. pension insurance policies sold in the 1980s and 1990s; sales discontinued in the early 2000s. With-profit insurance policies have a guaranteed interest rate, meaning the policyholder receives a fixed guaranteed return on their insurance savings for the duration of the contract. Accelerate international growth in asset management Enhance product offering to support growth Double the market share in private wealth management in Finland Utilise the full potential of a growing market with low product penetration Leverage the unique customer network to support corporate and wealth management growth Increase the sales productivity Further strengthening partnerships Ensuring the earnings capacity of the business area through increasing sales proactive portfolio management streamlining operations Strategic priority is to enable dividend capacity Dividend capacity is supported by the net finance result generated from the with-profit business, as well as the capital released from the reduced risk level of own balance sheet investments and the reduced with-profit portfolio 14 Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 15 ‌Business areas ‌INSTITUTIONAL AND WEALTH MANAGEMENT STRATEGIC PRIORITIES 2025-2028 Accelerate international growth in asset management Enhance the product offering to support growth Double the market share in private wealth management Mandatum offers a wide range of asset and wealth management services to its clients, including institutional investors and high-net-worth private individuals. The broad investment solution offering includes equities, fixed income, corporate bonds, and alternative investments. Institutional and wealth management business is at the centre of Mandatum's strategy, and the company is pursuing strong growth in this area. In 2025-2028, the goal is to accelerate international growth in asset management and to double the market share of private wealth management in Finland. Mandatum's way of investing stems from how the company manages the Group's own balance sheets. The investment operations possess long-term experience and a strong track record, especially in fixed income and alternative investments. As one of the largest investors in the Nordics, Mandatum has access to the world's most attractive investment opportunities, which it uses to benefit its clients, both in its own investment products and by supplementing its offering with the investment products of others. Mandatum has been able to generate attractive risk-adjusted returns for its clients in a variety of asset classes. CLIENTS, PRODUCTS AND SERVICES Mandatum's asset and wealth management clients include institutional and professional investors and high-net-worth individuals. They are offered diverse investment solutions in various asset classes. Mandatum serves institutional investors not only in Finland but also in other Nordic countries, particularly in Sweden and Denmark, and increasingly in the Central European markets. Institutional clients include pension funds, foundations, investment funds and other professional investors. The company's core areas of expertise for this client segment are fixed income and alternative investments, in particular. Private wealth management clients include high-net-worth individuals. Many of them choose discretionary, i.e. full mandate wealth management. Additionally, it is possible to select specific investment objects in all asset classes. Private wealth management clients also have access to extensive additional services. YEAR 2025 Best private banking provider in Finland 1 #1 High customer satisfaction (NPS) 73.1 (76.4) Client assets under management EUR million 7,835 8,721 6,400 2023 2024 2025 Institutions, Finland Institutions, international Private wealth management Client assets under management increased by 11 per cent to EUR 8.7 (7.8) billion. Net flow was EUR 583 (912) million. Strong growth in international asset management continued. Mandatum opened a sales unit in Luxembourg to be closer to its clients in Continental Europe. Growth of private wealth management continued to be strong, driven especially by sales of discretionary mandates. Kantar Prospera Private Banking 2025 Finland survey Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report CASE AWARDED INVESTMENT EXPERTISE The LSEG Lipper Fund Awards 2025 recognised Mandatum's Nordic High Yield investment fund as the best in Europe over the three-year and five-year review periods. The fund received the prestigious Lipper Award in March 2025 for the third time, and won in the five-year review period for the second time. The Managed Futures fund was awarded in April 2025, at the Nordic Hedge Award event as the best-performing fund in the Best Nordic Managed Futures / CTA Fund category for the second consecutive year. Mandatum Fixed Income Total Return Fund was named as the winner in the Best Bond Global Aggregate EUR category within the fund universe in Germany at the prestigious Scope Award 2026 gala, held in November 2025. 16 Client assets under management in private wealth management increased by 19 per cent from the previous year as Mandatum simultaneously expanded its market share. Demand for fixed income and alternative products remained strong. Managed Futures Fund expanded notably during the year and Mandatum expanded its product portfolio by launching a new European High Yield fund. Client satisfaction remained at a high level and Mandatum was chosen as Finland's best private banking provider in Kantar Prospera's Private Banking 2025 Finland customer survey. According to the survey, clients particularly value Mandatum's service-mindedness, strong brand and investment track record. Mandatum and Morgan Stanley Real Estate Investing established a joint venture, which invests in residential properties in the Helsinki Metropolitan area. Mandatum acts as the asset manager for the joint venture, which is looking to grow through more acquisitions. Mandatum received excellent scores in both the UN Principles for Responsible Investment (PRI) assessments and the Global Real Estate Sustainability Benchmark (GRESB) assessment. INTERNATIONAL EXPANSION OF ASSET MANAGEMENT CONTINUES Established clientele : Both private wealth management and asset management clients in Finland. Asset management clients in Sweden and Denmark. Some clients : Asset management clients in Norway and Central Europe. Future growth potential : Broader opportunities in asset management in wider Europe. Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 17 ‌CORPORATE CLIENTS Mandatum serves thousands of companies throughout Finland at different stages of their lifecycle. For large and medium-sized companies, the main focus is on rewards and compensation, including personal risk insurance, voluntary pension insurance and personnel funds, while smaller companies and entrepreneurs are offered insurance and investment services. The corporate client business area is strategically important for Mandatum. It has grown steadily in recent years, and Mandatum's position is strong: the company is a market leader in both supplementary pensions and personnel funds, and it has a strong position in personal risk insurance. As a result of years of active client work, Mandatum has established extensive contacts with business leaders, and a key objective is to leverage this network to grow both the corporate client and institutional and wealth management businesses. CLIENTS, PRODUCTS AND SERVICES For large and medium-sized companies, Mandatum offers comprehensive compensation and reward solutions. The main products are supplementary pensions, personal risk insurance, and personnel funds. The comprehensive package is complemented by advisory services on remuneration, ranging from share and performance-based bonus schemes to remuneration benchmarking. Consistent and transparent remuneration is important for the success of companies, as it steers the work of both management and personnel in the right direction and accelerates the achievement of the company's goals. Mandatum serves smaller companies and entrepreneurs particularly with insurance products, such as life insurance and cover for serious illness and disability. In addition, wealth management services and supplementary pensions help entrepreneurs manage their accumulated wealth. Supplementary pensions In addition to companies' executive management and specialist groups, supplementary pensions are also sold to entrepreneurs. These days, the corporate supplementary pensions are unit-linked savings plans, in which the pension to be paid in the future is determined by the accumulated insurance savings, according to the performance of the investments. Personal risk insurances Mandatum provides life insurance and insurance in case of permanent and short-term disability to companies of all sizes and their personnel. The popularity of insurance as employee benefits has grown in Finland in recent years, but compared to other STRATEGIC PRIORITIES 2025-2028 Utilise the full potential of a growing market with low product penetration Leverage the unique customer network to support corporate and wealth management growth Increase the sales productivity Market leader in supplementary pensions and personnel funds 1 #1 Extremely high customer satisfaction (NPS) 88.5 (84.3) Client assets under management EUR million 2,589 2,892 2,272 2023 2024 2025 Western countries, Finns are still underinsured. Personnel funds Personnel funds are an excellent way of encouraging the entire personnel to save and invest part of their performance-based bonuses. In recent years, the number of new personnel funds established for companies' personnel has increased, and demand is expected to remain strong. Mandatum offers personnel fund clients both a comprehensive fund management service as well as wealth management. 1) Based on assets under management in supplementary pensions and number of funds in personnel funds. 18 YEAR 2025 Client assets under management increased by 12 per cent to EUR 2.9 (2.6) billion. Net flow was EUR 159 (96) million, driven especially by the strong net flow of personnel funds. During the year, 44 new personnel funds were established. The premium income related to risk policies remained at the previous year's level. Sales of unit-linked pensions continued at a good level and premium income developed positively. There was wide interest in remuneration consulting services and the sales continued at a good level. During the second half of the year, the sales organisation was strengthened through new recruitments and efforts to further streamline sales processes were continued. Corporate clients' very high customer satisfaction improved further. The excellent cooperation between the corporate and wealth management businesses continued. In 2025, 69 per cent of new wealth management client sales came through corporate contacts. Around 30 per cent of the most wealthy people in Finland are Mandatum's clients. Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements UNIQUE CUSTOMER BASE AMONG THE WEALTHIEST INDIVIDUALS IN FINLAND Decision-makers CASE THE EU PAY TRANSPARENCY DIRECTIVE BRINGS NEW REQUIREMENTS TO REMUNERATION In spring 2023, the European Parliament approved a directive that promotes pay transparency. The directive is intended to strengthen the principle of equal pay regardless of gender, particularly by increasing pay transparency. Member States must transpose the directive by 7 June 2026. In 2025, the approaching transposition of the directive increased the demand for reward and compensation consulting services. Mandatum helped its client companies prepare for the requirements set by the directive by, among other things, building compensation and reward structures, conducting equality and pay structure assessments, and providing related training. Beneficiaries Corporate Governance Remuneration Report ‌RETAIL CLIENTS Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 19 Mandatum serves retail clients mainly through partners. Clients are offered various investment solutions as well as personal risk insurance. In the Retail clients business area, Mandatum's strategy builds on partnerships that help reach a wide range of clients across Finland. The largest distribution channel is Danske Bank, with whom collaboration has continued for decades. The most recent partner is Pohjantähti Mutual Insurance Company, with cooperation having started in September 2025. Although retail business is inherently stable, growth is not expected at the same scale as in the institutional and wealth management and corporate clients business areas. CLIENTS, PRODUCTS AND SERVICES Mandatum offers retail clients various investment solutions, such as unit-linked investment insurance policies and capital redemption contracts, as well as personal risk insurance covering death, disability and serious illness. The products also include loan insurance for mortgages. Investment insurance lnvestment insurance is well suited to ensuring financial security for oneself and one's family, long-term investing, and the generational transfer of wealth. Investment Insurance includes life insurance cover, which contains a beneficiary clause that can be used to specify which parties will receive the life insurance benefit. Capital redemption contract Capital redemption contracts are suitable for savers and investors who value ease and wish to have a flexible wealth management agreement. When the contract period expires, the contract's savings amount is paid to the policyholder. Personal risk insurance Personal risk insurance makes it possible to ensure financial security for oneself and one's family or the continuity of a business in challenging health-related situations. The insurance includes coverage for serious illness and disability as well as life insurance. YEAR 2025 Client assets under management increased by 5 per cent to EUR 3.7 billion. Investments contracts generated a net flow of EUR 14.2 (2.2) million, supported by product development measures. However, as the net flow from pension contracts was negative due to pension payments, this resulted in a negative net flow of EUR -18.5 (-24.2) million for the business area. STRATEGIC PRIORITIES 2025-2028 Further strengthening partnerships Ensuring the earnings capacity of the business area through increasing sales proactive portfolio management streamlining operations High customer satisfaction (NPS) 75.4 (71.3) Client assets under management EUR million 3,219 3,532 3,711 2023 2024 2025 Sales of risk insurances grew for both housing loan insurances and personal risk insurances. Mandatum and Pohjantähti Mutual Insurance Company started collaboration, as a result of which Mandatum's personal risk insurance policies covering critical illness, short-term and long-term disability and death became part of Pohjantähti's portfolio as of September 2025. High customer satisfaction was further improved. Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 20 ‌WITH-PROFIT BUSINESS With-profit liabilities on 31 Dec 2025 EUR 2.0 bn (2.3) With-profit liability run-off in 2025 EUR -213 m (-171) STRATEGIC PRIORITIES 2025-2028 Strategic priority is to enable dividend capacity Dividend capacity is supported by the net finance result generated from the with-profit business, as well as the capital released from the reduced risk level of own balance sheet investments and the reduced with-profit portfolio Mandatum actively seeks to reduce its with-profit insurance portfolio while focusing on capital-light business. The with-profit business area includes the management of the with-profit insurance portfolio and management of assets covering the run-off with-profit liabilities and assets covering shareholders' equity. In practice, the insurance portfolio consists of pension insurance policies sold in the 1980s and 1990s, the sale of which was discontinued in the early 2000s. As the with-profit insurance portfolio decreases, capital is released. This lays the foundation for Mandatum's dividend payout capacity, as the Group's solid solvency position, the growth of the capital-light business, and the capital released from the with-profit business, along with the profits generated, together enable shareholder payouts. With-profit insurance policies have a guaranteed interest rate, meaning the policyholder receives a fixed guaranteed return on their insurance savings for the duration of the contract. In Mandatum's with-profit insurance policies, the average guaranteed return is 3.1 per cent (as of 2025). With-profit insurance contracts are a profitable business for Mandatum, but due to the high capital requirement, the return YEAR 2025 The with-profit insurance portfolio decreased in line with expectations. The net finance result of the with-profit business was EUR 102.7 (100.4) million and the profit before taxes amounted to EUR 89.9 (116.3) million. The interest rate risk related to insurance contract liabilities was continued to be managed, even if most significant With-profit liability run-off forecast EUR billion on capital employed remains relatively low. For this reason, Mandatum now focuses on capital-light business. measures had been taken before 2025. The weight of fixed income assets in the original portfolio increased to 76 (74) per cent and the hedging level of the interest rate risk related to the insurance contract liability was increased. 5.0 2.5 -59% 0.0 2015 2017 2019 2021 2023 2025 2027E 2029E 2031E Original portfolio Segregated portfolio Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 21 ‌ADDED VALUE FROM SUSTAINABILITY Mandatum seeks to create value, and influence and manage risks from the perspective of sustainability themes that are significant for the company and society. Mandatum's Sustainability Strategy is built on three key themes. These are responsible investment, sustainable insurance and compensation, and sustainable business. RESPONSIBLE INVESTMENT In Mandatum's view, companies that operate responsibly perform better. By investing responsibly itself, Mandatum makes better-justified investment decisions. Responsible investment involves managing assets in a way that considers environmental, social, and governance (ESG) matters in investment analysis, decision-making, and reporting on investments. Mandatum aims to both understand and account for the sustainability risks and opportunities related to its investments and to identify and mitigate the adverse impacts of its investment activities on the environment, climate, society, employees, human rights, and matters related to combatting corruption and bribery. SUSTAINABLE INSURANCE AND COMPENSATION Through its business operations, Mandatum strives to improve the financial security of its clients and promote responsible HR practices of its client companies. The goal of insurance operations is to promote the wellbeing of clients through financial preparedness and wealth creation. Preparedness and wealth creation also generate value for society. Mandatum actively promotes responsible compensation in Finnish companies. Responsible compensation supports companies' success and creates wellbeing among the company's employees. At the core of operations is the client's interest and needs. High-quality, accessible, and equitable customer service supports client wellbeing. SUSTAINABLE BUSINESS Responsibility for personnel and sustainable practices are part of building a successful business. The wellbeing of employees is strategically important for Mandatum. Sustainable business management and practices form the foundation of Mandatum's operations. Good governance ensures that Group companies and their personnel, suppliers, and other partners comply with laws, regulations, and generally accepted principles. Financial responsibility means ensuring the continuity, profitability, earnings power, and solvency of operations in all market conditions. Ensuring continuity creates the foundation for the sustainable and responsible management of clients' insurance-related liabilities and clients' investments and pensions for decades. Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report EXCELLENT RESULTS IN ESG RATINGS SUSTAINALYTICS Low risk 12.3 Among top 2% in the industry Scale: 100-0 MSCI AA Among industry leaders Scale: CCC-AAA ISS ESG Prime Among industry leaders (C+) Scale: D--A+ (best industry rating B-) 22 UN SUSTAINABLE DEVELOPMENT GOALS The UN Agenda 2030 and its 17 main goals aim at sustainable development that comprehensively takes into account the environment, economy, and people. Mandatum is committed to promoting the UN Sustainable Development Goals (SDGs), four of which are particularly relevant to the company's operations and impacts: SDG 3 Good health and well-being - Mandatum promotes the wellbeing of its clients through financial preparedness and wealth creation. SDG 8 Decent work and economic growth - Employee satisfaction is strategically important to Mandatum, and the working conditions of investee companies are also monitored, and companies are engaged on a case-by-case basis. In its business operations, Mandatum aims for sustainable growth and a positive client experience. SDG 13 Climate action - Mandatum promotes climate action both in its investment activities and own operations. SDG 16 Peace, justice and strong institutions - Good governance is the foundation for Mandatum's business, and the company also develops the good governance of its client companies through offering rewards and compensation services which promote responsible business. Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 23 ‌CAPITAL AND SOLVENCY Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 24 CAPITAL AND SOLVENCY INTRODUCTION 25 TARGETS FOR GROUP-LEVEL SOLVENCY 25 SOLVENCY II GROUP STRUCTURE 26 SOLVENCY POSITION 26 SOLVENCY CAPITAL REQUIREMENT BY BUSINESS AREA 29 CAPITAL GENERATION 29 BUSINESS OUTLOOK 32 LEVERAGE 33 Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 25 CAPITAL AND SOLVENCY ‌INTRODUCTION ‌At Mandatum, group-level capitalisation is managed within Mandatum's risk appetite framework, which sets targets for solvency and informs potential risk management actions. Mandatum's solvency targets are determined by the Group's ambition to provide an attractive risk-return profile for shareholders, and the targets reflect Mandatum's risk appetite. The balance between risks and actual level of capital is analysed and monitored regularly. When a potential imbalance between risks and the actual level of capitalisation is identified, the balance will be secured by adjusting existing risk exposures or capital, or both. In general, Mandatum believes that maintaining the profitability of its businesses and the active adjustment of risks is the first line of defence in risk management, and, in the long run, an even more important factor than capitalisation. Mandatum Group companies must monitor the size of their capital buffers and have practices in place to maintain an amount of capital which is always above the defined capital floor. In addition to solvency, another important factor of capital management is liquidity management. Mandatum considers debt capacity an important source of liquidity and solvency capital in case of a stress event and therefore aims to ensure reliable access to debt capital markets. Mandatum plc is responsible for the Group's capital management activities. These actions are guided by targets set for group-level solvency and liquidity and include decisions on group-level investment exposures, business growth and performance targets, capital distributions and capital and other debt instrument issuances. Mandatum's capital management framework aims to support value creation by enabling Mandatum's strategy. Quantitative targets are set for the Group's solvency, but other metrics are also monitored. At Mandatum, the target amount of capital is determined by defining both the capital floor and the capital buffer. The capital floor is the minimum level of own funds the Group needs to run its business operations normally. However, since risk exposures and profitability of business operations evolve over time and capital can sometimes erode rapidly due to stressed situations, there is a need to have a certain buffer in excess of the capital floor. This buffer together with the capital floor form the target amount of capital. An adequate buffer gives time for the Group to adjust its risks and capital in a controlled manner in times of stress, i.e. to maintain a balance between risks and capital at all times. An adequate buffer also gives reassurance to supervisors, clients, investors and other stakeholders. TARGETS FOR GROUP-LEVEL SOLVENCY Mandatum has set the mid-term target for the Group's solvency ratio without the transitional measure to be between 160 and 180 per cent. The solvency position is managed towards the target range which is considered optimal in view of Mandatum's current business operations and strategy. Solvency targets have been set to provide a high level of protection against Mandatum falling below regulatory limits. The target levels are intended to encourage active steering of the balance sheet, not automatic actions. For example, falling below a target level would not directly mandate dividend not being paid but the existing financial environment and expected business development would also be considered in the decision-making. Minimum levels of financial resources are set based on the risk exposures and the regulatory and rating agency requirements for the Group. Buffers on top of the minimum levels are held to ensure business continuity and dividend security. These buffers ensure that Mandatum Group will remain above regulatory and rating agency requirements also in a severe stress event. The Group is able to operate below the target levels for some time, but it aims to gradually meet the target levels. The appropriateness and adequacy of the target levels are reassessed regularly in order to adjust to any potential changes in the risk profile and business mix. The parent company of Mandatum Group, Mandatum plc, must additionally monitor group-level risk concentrations and intra-group transactions which have a direct impact on the desired level of capitalisation. In addition, the liquidity position is monitored regularly as well as its expected development. Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report ‌SOLVENCY II GROUP STRUCTURE As a financial entity, Mandatum needs to monitor various regulations and determine which of those regulations it must comply with. Currently the Solvency II Directive (2009/138/EC) sets out the requirements that Mandatum as a Group needs to meet. Under Solvency II, Mandatum is an insurance holding group and Mandatum plc is its ultimate parent. Table 3.1 shows how Mandatum as a Solvency II group is formed based on current regulations. Within Mandatum Group, Mandatum Asset Management Ltd (MAM) forms an investment firm group as defined in the EU Regulation 2019/2033 on the prudential requirements of investment firms. The MAM investment firm group ("MAM Group") is formed by MAM as the parent company and its subsidiaries Mandatum AM AIFM Ltd, Mandatum Fund Management S.A. and Mandatum Asset Management Palvelut Oy. MAM also has three smaller subsidiaries which are not part of the investment firm group under the EU Regulation 2019/2033, but which are nevertheless legally MAM's subsidiaries. All relevant regulations, reporting requirements and capital adequacy requirements are observed and complied with at the sub-group level. SOLVENCY POSITION 26 The solvency position is monitored by comparing the amount of own funds to the regulatory solvency capital requirement (SCR). The amount of own funds under Solvency II (SII) is based on the market-consistent valuation of the total balance sheet. The valuation of assets under the SII framework is based on the IFRS balance sheet with a few exceptions, the valuation of the intangible assets being the most significant. The technical provisions under Solvency II are equal to the so-called best estimate of the technical provisions plus the risk margin. The best estimate is based on the realistically expected cash flows of the insurance portfolio, which are discounted using the yield curve applied in Solvency II, derived from the risk-free yield curve. In terms of unit-linked insurance, the best estimate is the insurance savings minus the present value of the risk and expense surplus related to the unit-linked policies. The basis for the risk margin in the Solvency II framework is a six per cent cost of capital. For life insurance risks and operational risks, the risk margin is the present value of the future cost of capital. Table 3.1 Mandatum SII Group companies and aggregation method Company Aggregation method Mandatum plc Full consolidation Mandatum Life Insurance Company Ltd Full consolidation Mandatum Services Ltd Full consolidation Mandatum RESI I Ltd Full consolidation Mandatum Asset Management Ltd Aggregated based on sectoral rules Mandatum AM AIFM Ltd Aggregated based on sectoral rules Mandatum Fund Management S.A. (Luxembourg) Aggregated based on sectoral rules PreCast Holding Ltd Related undertaking In accordance with current legislation within Mandatum Group, Mandatum Life applies a transitional measure on technical provisions for the original with-profit pension policies with a guaranteed interest rate of 3.5 or 4.5 per cent. The transitional measure for technical provisions continues until 31 December 2031. The transitional measure on technical provisions increases own funds under Solvency II and its effect totalled EUR 143.4 million as at 31 December 2025. Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report The composition of Solvency II own funds of Mandatum Group as at the end of December 2025 is shown in Figure 4.1. The item 'IFRS → SII adjustment' refers to differences between the applied valuation methods in the different frameworks, among which the most significant are the valuation of technical provisions in Solvency II vs. insurance and investment contract liabilities and intangible assets. When calculating solvency requirements under Solvency II, Mandatum applies the 'standard formula' where market and life insurance risk parameters are determined in the regulations. The goal has been to set the solvency capital requirement under Solvency II to a level where the own funds would be sufficient to secure the benefits of the insured with a one-year horizon and a 99.5 per cent confidence interval. Figure 4.2 shows the composition of Mandatum Group's solvency capital requirement as at 31 December 2025. The item "Other" includes the following items: the loss absorbing capacity of technical provisions and taxes, diversification benefits and capital requirements aggregated on the consolidated balance sheet i.e. mainly the capital requirement of MAM Group. As can be seen in Figure 4.2, the most significant risk source from a Solvency II perspective is the market risk. Figure 4.3 on the next page shows how the market risk SCR is composed of various market risk sources. 27 Mandatum Group's solvency ratio as at 31 December 2025 was 184 per cent. In solvency calculations the proposed dividend of financial, totalling to EUR 427 million is already deducted from own funds as shown in Figure 4.1. Figure 4.1 Composition of own funds of Mandatum Group as at 31 December 2025 2,500 299 Figure 4.2 Composition of SCR of Mandatum Group as at 31 December 2025 303 24 34 1,142 994 -508 1,500 2,000 EUR million 1,500 1,000 127 563 -167 1,825 -427 1,430 EUR million 1,000 500 500 0 IFRS equity CSM + RA IFRS -> SII adjustment Other Tier 2 loans Foreseen dividend Own funds 0 Market risk Underwriting risk Counterparty risk Operational risk Other SCR Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report Figure 4.4 shows the development of the solvency position over the calendar year adjusted for dividend accrual. Note that the effect of the dividend is taken into account only in the year-end figures. In the year-end 2025 figure, the Board of Directors proposal of EUR 0.85 per share is used. During the calendar year, the solvency position was quite stable. Own funds prior proposed dividend distribution increased due to the good financial results among other things. On the other hand, the SCR increased mainly due to the increase of symmetrical adjustment applied in equity risk SCR calculations and also due to the positive development of volumes in the capital light business. This was partly offset by the expected decrease of the with-profit liabilities as well as the de-risking asset portfolio of the with-profit business. In addition to group-level solvency monitoring, Mandatum Group includes four independently regulated entities, which all have their own regulatory frameworks including capital adequacy requirements and other corresponding requirements in addition to group-wide requirements. Table shows the solvency and capital position of each entity and sub-group. Table 4.1 Solvency and capital position of regulated entities as at 31 December 2025 EUR million Solvency/capital Solvency/capital Own funds requirement adequacy ratio Regulatory framework 28 Mandatum Life 1,730.3 823.6 210% Solvency II MAM Group 13.9 9.3 151% IFR/CRR - MAM 15.2 7.3 208% IFR/CRR MAM AIFM 2.1 0.4 536% AIFMD/CRR MAM Lux 7.4 0.7 1,081% UCI law/CRR Figure 4.3 Composition of market risk SCR of Mandatum Group as at 31 December 2025 Figure 4.4 Development of Mandatum Group's solvency position during the year 2025 1,500 197 3,000 210% 212% 222% 226% 184% 2,185 225% 180% EUR million 1,000 EUR million 2,000 2,048 2,082 2,137 1,825 % 135% 500 1,000 973 984 964 968 994 90% 45% 121 297 38 24 1,142 -341 120 687 0 Equity Equity Spread Interest Property Currency Concen- Diversi- SCR, 0 0% 2024 3/2025 6/2025 9/2025 12/2025 risk (SA = 0%) risk, effect of SA risk rate risk risk risk tration risk fication market risk Own funds SCR Solvency ratio Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report ‌SOLVENCY CAPITAL REQUIREMENT BY BUSINESS AREA Mandatum steers its business through four business areas: (i) Institutional and wealth management, (ii) Corporate clients, (iii) Retail clients and (iv) With-profit business. The first three of these are generally referred to as the capital-light business areas. In addition, in its capital management, Mandatum assesses the Group's non-strategic assets separately from the aforementioned business areas. Figure 5.1 shows how the Group's solvency capital requirement is composed of business areas. CAPITAL GENERATION General Mandatum Group's financial performance is measured based on IFRS standards and the results are shown in the Group's financial statements. In addition, Mandatum follows its capital generation based on the Solvency II framework, since the solvency position is one of the three most important measures for analysing dividend capacity. The other two are the liquidity position of the parent company and the parent company's distributable funds according to the local Generally Accepted Accounting Policies (GAAP). Another reason why capital generation metrics are important for Mandatum is that capital requirements between the legacy portfolio (With-profit business area) and the new business (capital-light business areas) are different, and business transformation towards the capital-light business areas is expected to generate capital reliefs in the coming years (see chapter 7). Key elements of capital generation Mandatum splits its capital generation metrics into three main components: 29 Organic capital generation, Management actions and Other. Organic capital generation aims to measure the performance of the underlying business operations from a solvency position view. Management actions are the effect of separate decisions made by the management, including dividend distributions and emissions and repayments of subordinated loans. The item 'Other' includes the effect of regulatory changes and other occurrences not categorised as management actions. For example, the effect of the symmetric adjustment is included in this item. Figure 5.1 Decomposition of SCR by business area as at 31 December 2025 161 994 431 403 1,000 800 EUR million 600 400 200 0 With-profit business area Capital-light business areas Other assets SCR 31% 210% 184% -42% -15% 31 Dec 2024 Management actions Other 31 Dec 2025 2,048 -427 -39 1,825 973 -13 58 994 -23 243 Organic capital generation Solvency ratio SCR (EURm) Own funds (EURm) Year 2025 Capital and Solvency Report of the Board of Directors Financial Statements Corporate Governance Remuneration Report 30 Figure 6.1 shows the split of capital generation into its components during the year 2025. The most informative component from a business perspective is organic capital generation, which had a EUR 301 million positive effect on the Group's solvency position during the year. During the year, management actions which had a EUR -427 million effect on own funds, consisted of a EUR 427 million dividend as proposed by the Board of Directors. The item 'Other' includes regulatory changes, model changes and other related effects which are either one-off items or otherwise not directly related to the performance of the underlying business operations. Figure 6.1 Mandatum Group's capital generation in total during the year 2025

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