SpareBank 1 and DNB sign letter of intent on insurance merger

On 20 June 2018, SpareBank 1 Gruppen AS and DNB ASA signed a letter of intent to merge their non-life insurance operations and will thus establish one of Norway’s largest insurance companies.

The companies to be merged are DNB Forsikring AS and Sparebank 1 Skadeforsikring AS, which both have a licence to engage in non-life insurance operations.

According to the letter of intent, the exchange ratio will be approximately 80 per cent for SpareBank 1 Gruppen and approximately 20 per cent for DNB. DNB will increase its holding in the new company, whereby SpareBank 1 Gruppen will have a holding of 60 per cent and DNB a holding of 40 per cent on the merger date. DNB will thus increase its exposure in a capital-light and profitable business area.

At the time of the merger, the new company will have a market share within non-life insurance of more than 15 per cent and will thus be Norway’s third largest non-life insurance company and the largest non-life insurance company distributing its products through banks. The merger will strengthen DNB’s focus on and exposure to an attractive product segment. The size, product range and innovative power of the new company will enable DNB to deliver even better insurance products to both private individuals and corporate customers.

The tentative merger date is 1 January 2019, subject to the approval of the authorities.

Contact:
Thomas Midteide, group executive vice president Media & Marketing, + 47 96232017
Rune Helland, head of Investor Relations, + 47 97713250

This information is subject to the disclosure requirements according to Section 5-12 of the Norwegian Securities Trading Act.