Taaleri’s long-term financial targets are: continuing earnings growth of at least 15 per cent, operating profit target of at least 20 per cent of income, return-on-equity of at least 15 per cent, and its equity ratio target of at least 30 per cent.
The company strives to increase the amount of dividend it distributes and to annually distribute a competitive dividend, with consideration to the company’s financial and financing situation as well as the Group’s capital adequacy requirement.
outlook
COVID-19 pandemic
Taaleri reacted to Finnish Government’s recommendations regarding COVID-19 pandemic measures and most of Taaleri’s personnel was working remotely already in early March. Taaleri has prepared a plan to start normal operations at the offices in August if the situation of the epidemic allows it. Work related travel to foreign countries is restricted and no travelling is allowed to countries or areas that are not approved for travel by authorities.
Short-term risks and concerns
The most significant external uncertainties affecting the Group’s operating profit are changes in the operating and regulatory environment and the development of the financial markets globally and especially in Finland. The negative effects of the COVID-19 pandemic on the development of the Finnish and the world economy are exceptionally challenging and this will directly and indirectly affect Taaleri's business. The new EU-level solvency regulation for investment firms will enter into force on 26 June 2021, and the preparation of lower-level regulations of the regulation package is still in progress. Therefore, it is not yet possible to assess the full impact of the new regula-tion on Taaleri and its business.
The results of the Wealth Management and the Energia segments are influenced by the development of assets under management, which depends among other things on the progress of private equity fund projects and the development of capital markets. Profit development is also influenced by the realization of performance fees, which are tied to the success of the investment operations. The Energia segment’s earnings are also affected by the success of its own investments in energy projects.
The Insurance segment’s guaranty insurance business and investment activities have a major impact on Taaleri’s operational income and capital adequacy.
The Other Operations returns consist of the market value changes in investments and of sales profits/losses gained as well as returns of loans granted. The earnings and results of the Other Operations may thus vary significantly between periods under review.