Aktia Bank to decrease holdings of Folksam Non-Life Insurance Ltd
Aktia Bank plc
Stock Exchange Release
26 February 2015 at 1 p.m.
Aktia Bank plc (Aktia Bank) has today entered into an agreement to divest further 24% of its holdings in Folksam Non-Life Insurance Ltd (previously Aktia Non-Life Insurance Ltd) to Folksam General. Following the divestment, Aktia Bank's ownership in Folksam Non-Life Insurance decreases to 10%, whereas Folksam General increases its ownership to 75%. The holdings of Pension Insurance Company Veritas are unchanged at 15%.
Aktia and Folksam started cooperation in 2012 when Folksam General became the majority shareholder (51%) of Aktia Non-Life Insurance Ltd along with Aktia plc (34%) and Pension Insurance Company Veritas (15%). Folksam will now make use of the original option to buy another 24% of shares in Aktia Non-Life Insurance Ltd from Aktia within a period of 3 years.
Aktia Bank will continue to focus on customer relations, and the production of competitive non-life and pension insurance products is managed by Aktia Bank's cooperation partners Folksam and Veritas. Aktia Bank will continue as the most important distributing channel for Folksam Non-Life Insurance, and the cooperation agreement was prolonged by further five years simultaneously with the transaction. New and stricter regulations concerning capital adequacy are a further incentive for Aktia Bank to decrease its holdings in the non-life insurance company, thus avoiding future burden from the holdings on the bank's capital adequacy.
The transaction frees capital amounting to EUR 14.1 million for Aktia Bank, corresponding the transaction price of the shares. The estimated total effect of the transaction on the Bank Group's equity is negative, amounting to EUR -2.7 million, of which approximately EUR -0.4 milion will burden the operating profit for the first quarter of 2015. The transaction will have a minor positive effect on the Bank Group's capital adequacy as per 31 March 2015. The ownership of shares is transferred on 3 March 2015 when the transaction price is paid for the shares.
AKTIA BANK PLC
For more information, please contact:
Carl Pettersson, Development Director, tel. +358 10 247 6250
Anders Wikström, Information Officer, tel. +358 10 247 6294
Nasdaq OMX Helsinki Ltd
Aktia provides a broad range of products within banking, insurance and real estate agency. Aktia operates mainly in coastal areas and inland growth areas. Aktia has about 300,000 customers who are served by nearly 900 employees at 52 branch offices and via Internet and telephone services. Aktia's shares are listed on the list of Nasdaq OMX Helsinki Ltd. For more information about Aktia see www.aktia.com