
ANALYSIS

Alternative exposure
For the purpose of this analysis the following items on the balance sheet (highlighted in red) have been classified as alternative: Property (other than for own use), Equities – unlisted, Structured notes, Collateralised securities, Other investments, Loans and mortgages to individuals, Other loans and mortgages and Receivables (trade, not insurance). While the Solvency II balance sheet does not provide a breakdown based on a more traditional distinction of alternative assets, e.g. hedge funds, infrastructure etc., the figures give some indication of other asset classes that fit the criteria. Despite the lack of granularity the figures still provide a reasonable indication of the type, and more importantly appetite, to invest in alternatives in the Nordics. Both Denmark and Finland exhibit similar exposures to alternative assets, 4% and 5% respectively. In absolute amounts the portfolios are quite different: EUR 18 billion Danish alternatives compared to only EUR 4 billion in Finland. Iceland, Norway and Sweden all have about 7% exposure to alternatives despite considerable differences in the size of the national balance sheet, with Sweden’s EUR 22 billion overshadowing Norway’s EUR13 billion and dwarfing Iceland’s EUR 0.8 million.Nordic exposure
The following chart looks through into the same distribution for individual solo companies across the Nordic five countries.

