Conversion of Gjensidige Forsikring to a public limited company (ASA)

Conversion of Gjensidige Forsikring to a public limited company (ASA)

The Board of Directors of Gjensidige Forsikring BA recommends that the general meeting approve a conversion of the Company to a public limited company (ASA). The reason for this recommendation is new legislation that has made it legal to organise the customers’ ownership in the form of a financial foundation. At the same time, the Board of Directors requests that the management start the preparations for a stock exchange listing of the Company during the 2nd half of 2010.

The company has studied whether the customers’ ownership of Gjensidige Forsikring should be organised in a financial foundation. The model that has been studied entails that the Gjensidige Foundation be converted to a financial foundation, and it also assumes that Gjensidige Forsikring will be converted to a public limited company (ASA). All of the shares will initially be owned by the financial foundation. In the event of a future stock exchange listing, the foundation will sell a percentage of the shares on the market. This will probably take place in the 2nd half of 2010, provided that the situation in the stock market is satisfactory.   
 
When the new legislation was put into place, it was natural to study a financial foundation model in order to assess whether it could help improve the customer governance of the business enterprise. In the new model, the customers will still be a significant long-term owner of Gjensidige, and this will entail a clearer management structure that is easier to understand.

If the Gjensidige Foundation is converted to a financial foundation, it will continue both the charitable activities and the exercising of the customers’ ownership.  In the event of a future stock exchange listing, income from the sale of shares will remain in the foundation. The share dividends from Gjensidige Forsikring may be channelled further as individual dividends to the customers so that the arrangement with dividends to the customers will continue as at present.
The general meeting of Gjensidige Forsikring BA will consider the matter of conversion of the Company to a public limited company (ASA) on 23 April this year. The general meeting of the Gjensidige Foundation will consider the conversion to a financial foundation on the same day.

Information director Øystein Thoresen Tlf: 47 952 33 382