Mandatum Life's sale of the insurance portfolio...
SAMPO PLC STOCK EXCHANGE RELEASE 24 April 2018 at 9:00 am
Mandatum Life's sale of the insurance portfolio to Danske Bank cancelled and co-operation continued
Mandatum Life Insurance Company Limited (Mandatum Life) disclosed on 27 October 2016 that it would use its right to sell the insurance portfolio distributed by Danske Bank's Finnish branch network to Danske Bank or a third party appointed by Danske Bank. The valuation of the portfolio was conducted by external valuators.
As a result of the valuation process, the value of the insurance portfolio as at the 31 December 2016 was determined to be EUR 334 million. After the correction for the theoretical result since 2017, Mandatum Life would have received EUR 297 million at the end of 2018.
Mandatum Life and Danske Bank have today agreed to continue their co-operation and that the transfer of the insurance portfolio agreed earlier will not take place. Commission structures in the new co-operation agreement differ from the ones used earlier and Mandatum Life will pay higher commissions for both the new sales and the existing portfolio.
The agreed transaction is subject to confirmation of the tax treatment. On closing of the transaction, Mandatum Life will receive a transaction price of EUR 197 million from Danske Bank for the above arrangement. The amount is subject to corporate tax. The transaction is expected to close within 3 months.
The co-operation agreement is valid for five year periods at a time, but Danske Bank is entitled to extend it for a period of 15 years. Danske Bank has the right to buy the portfolio in question from Mandatum Life at the end of the co-operation. The agreement does not limit Mandatum Life to Danske Bank in its choice of other banking partners. By the fact that the portfolio remains with Mandatum Life, the company's result is estimated to increase annually EUR 20 million compared to the situation where the portfolio would have been transferred.
SAMPO PLC
Jarmo Salonen
Head of Investor Relations
Additional information:
Petri Niemisvirta
Managing Director, Mandatum Life
tel. +358 10 516 7200
Jukka Kurki
CFO, Mandatum Life
tel. +358 50 424 6630
Distribution:
Nasdaq Helsinki
London Stock Exchange
The principal media
Financial Supervisory Authority
www.sampo.com
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Sampo Oyj via Globenewswire
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