Foreningen Norliv will purchase a 45% stake in Denmark-based Nordea Liv & Pension Livsforsikringsselskab A/S from Nordea Life Holding AB for €472 million, subject to approval of the Danish Financial Supervisory Authority and anti-trust authorities.
The transaction, which is expected to complete in the first quarter of 2018, will see Nordea Liv & Pension Livsforsikringsselskab renamed during 2018, according to a Dec. 21 press release by Nordea Bank AB (publ). The deal in Denmark is not expected to have an effect on the Nordea Life & Pensions companies in Sweden, Finland and Norway.
Foreningen Norliv, which represents customers of Nordea Liv & Pension Livsforsikringsselskab, already has a 25% stake in the insurance company and will acquire the remaining 30% stake in the coming years. Nordea Bank noted that it will continue its collaboration and partnership with Nordea Liv & Pension Livsforsikringsselskab and provide customers with the latter's products.
The transaction will generate a post-tax capital gain of €172 million for Nordea Bank, while the remaining 30% stake in Nordea Liv & Pension Livsforsikringsselskab will be re-measured to fair value and is expected to lead to an additional post-tax gain of €115 million for the group.
The solvency ratio of NLP group is expected to increase by about 10 percentage points.