DANSKE BANK Plc
COMPANY ANNOUNCEMENT
20.10.2016
Co-operation agreement between Danske Bank and Mandatum Life to end
In connection with the acquisition of Sampo Bank by Danske Bank A/S in early 2007, Sampo Bank (now Danske Bank Plc), and Sampo Life (now Mandatum Life) signed an agency agreement that guaranteed Sampo Life the exclusive right to sell life and pension insurance products through Sampo Bank's branch network in Finland. The agency agreement expires at the end of 2016.
The bank agreement above guarantees Mandatum Life the right to sell the insurance portfolio sold under the agreement to Danske Bank Group. Mandatum Life has communicated that they will decide by the end of October 2016 whether they will use this option.
In case Mandatum Life will use its option the transfer of the portfolio will be at fair value based on an assessment by a third party in accordance with the terms and conditions of the bank transaction agreement referred to above. The valuation is estimated to be finalized at the latest by summer 2017 and the transfer of the portfolio is estimated to take place during the fourth quarter of 2017. The transfer is subject to regulatory approvals. The transfer would have no effect on existing customer agreements.
The possible transaction is expected to have no effect on the outlook for Danske Bank Plc or for the Danske Bank Group.
The portfolio consists of 151,000 policies and consists almost exclusively of unit linked products and loan insurance. The technical reserves related to the portfolio amounted to EUR 3,060 million at the end of 2015. The portfolio accrued premiums of EUR 453 million in 2015 and contains almost exclusively unit linked products. The amount of with profit technical reserves is EUR 212 million.
Danske Bank Plc
For further information:
Risto Tornivaara
CEO
Danske Bank Plc
Tel. 010 546 6675