DARAG Deutsche Versicherungs-und Rückversicherungs-AG signed a share purchase agreement March 17 to acquire Swedish insurer Ikano Försäkring from Ikano SA.
Following the transaction, the Germany-based run-off insurance specialist, along with Swedish health insurance firm Euro Accident Health & Care Insurance AB, which agreed March 22 to acquire Ikano Livförsäkring AB, will file applications with Swedish regulator Finansinspektionen to process the ownership and management approval filing.
The deals, terms of which were not disclosed, are expected to close in the third quarter. AXA will become Ikano Bank AB (publ)'s new provider of payment protection insurance solutions in connection with the transactions.
All jobs at Ikano Försäkring will eventually disappear following the sale to DARAG, with coworkers of the company to be supported until its closure.
Ikano Group said in April 2016 that it would sell the units owing to increased regulatory demands, which added to operational costs and diminished profitability.