Sampo Oyj The Valuation Of Mandatum Life's Portfolio To Be Sold To Danske Bank Finalized
TIDMSAMPO
SAMPO PLC STOCK EXCHANGE RELEASE 19 June 2017 at 4:45
pm
The valuation of Mandatum Life's portfolio to be sold to Danske Bank
finalized
Mandatum Life Insurance Co. Ltd. disclosed on 27 October 2016 that it
will exercise its option to sell the insurance portfolio, sold through
Danske Bank's branch network in Finland, to Danske Bank or its nominee.
The valuation process, by which the value of the portfolio was to be
determined, is now finalized by the external valuators.
As a result of the valuation process the value of the insurance
portfolio as at the 31 December 2016 is EUR 334 million. Mandatum Life
and Danske Bank have agreed that the theoretical result from the
beginning of 2017 until the date of the transfer as determined in the
valuation process will be deducted from the final sales price. This
theoretical result for year 2017 is determined to be EUR 18.1 million
and for year 2018 EUR 18.6 million. Mandatum Life and Danske Bank have
agreed that the actual result produced by the portfolio until the
transfer remains with Mandatum Life. The Transitional Agency Agreement
between Mandatum Life and Danske Bank will continue until closing.
After the transfer has been completed the transaction is expected to
have a negative impact of EUR 20 - 25 million on Mandatum Life's annual
profit before taxes. The transfer of the portfolio is expected to take
place during 2018.
For Mandatum Life sales gain from the transaction equals the value of
the insurance portfolio adjusted with items explained in the previous
chapter. The sales gain is taxable under the Finnish tax law. In Sampo
Group's consolidated accounts a goodwill of approximately EUR 75 million
will be deducted from the sales gain. The transaction will have a
positive impact on Mandatum Life's solvency position.
The sale of the portfolio is related to Mandatum Life's decision of not
prolonging its agency agreement with Danske Bank as of 31 December 2016.
In relation to the agency agreement Mandatum Life had the right to sell
the insurance portfolio, sold through Danske Bank's branch network in
Finland, to Danske Bank.
SAMPO PLC
Maria Silander
Communications Manager
tel. +358 10 516 0031
Further 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
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
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
http://www.sampo.com
(END) Dow Jones Newswires
June 19, 2017 10:00 ET (14:00 GMT)