GJF, GJF02: Amendment in Norwegian law related to Tier 1 capital instruments
The Norwegian Financial Supervisory Authority has informed Gjensidige that the Commission Delegated Regulation (EU) 2019/981 will be implemented in Norwegian law effective from 30 June 2020. The amendment in the law results in a change in requirements for capital instruments to qualify as Tier 1 capital in the Solvency II regime, related to write-downs. The terms stipulated in Gjensidige Forsikring ASA’s perpetual hybrid loan, which currently is categorised as Tier 1, deviate from the new requirements. As a result of this, the loan no longer qualifies as Tier 1, but will qualify as Tier 2.