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Finanstilsynet approves merger of SpareBank 1 Skadeforsikring, DNB Forsikring

The Danish financial supervisory authority, or Finanstilsynet, has approved the planned merger between Norwegian insurers SpareBank 1 Skadeforsikring AS and DNB Forsikring AS.

The merger will be effective from Jan. 1, 2019, and the surviving entity following the merger will be called Fremtind Forsikring AS.

Under the transaction, the individual personal risk insurance policies from SpareBank 1 Forsikring AS and DNB Forsikring, and company-paid personal risk insurance policies from SpareBank 1 Forsikring will be transferred to the new company, which will be a unit of SpareBank 1 Gruppen AS.

The transaction sets a conversion ratio of 80% for SpareBank 1 Gruppen and 20% for DNB ASA based on the negotiated market value of the two nonlife insurers, including the value of the transferred personal risk products. DNB will increase its holding in the new company to 35%. In addition, DNB has secured an option to acquire an ownership interest of up to 40%.

Under the deal, the new nonlife insurer is valued at 19.75 billion Norwegian kroner, including the value of the transferred personal risk products.

As of Dec. 20, US$1 was equivalent to 8.70 Norwegian kroner.