It was vital for the transaction that it is Storebrand who will become the new owner of SPP, according to Pär Boman:

"Our customers' financial security when they retire is something which must be handled with the greatest care. The right purchaser was therefore more important than any other factor. The best interests of our customers always have priority for Handelsbanken."

 

Storebrand is one of the largest and most financially sound occupational pension companies in the Nordic region. It was founded in 1767 and today is a modern, innovative and for-profit life insurance company. Like SPP in Sweden, Storebrand is regarded as the Norwegian market's leading specialist in occupational pensions. For the past four years, Storebrand has also had the highest levels of customer satisfaction on the Norwegian market.

 

"This deal doesn't take away anything the customers have at present. On the contrary, it brings added value: more choices, more competitive solutions and even greater expertise."

 

SPP and Storebrand will now form the largest occupational pensions group in the Nordic countries:

"SPP has a unique position in the Swedish occupational pensions market. It is the only company with operations in all market segments. There is in-depth and broad competence at SPP, and the company's employees are therefore a vital factor in the deal. We warmly welcome them to our Group where they will be a fantastic advantage in our drive in the Swedish market," says Idar Kreutzer, CEO of Storebrand.

 

During the six years, Handelsbanken has owned SPP, the company has been completely changed. This includes a halving of its operating costs. SPP has also become a for-profit life insurance company and its products and offerings have been comprehensively developed.

 

At the same time, the market for occupational pensions has increasingly moved towards solutions sold via brokers and major "cross-in-the-box" pension selections. The battle for market share is more and more frequently conducted via representatives of the companies and large, centralised advertising campaigns.

"So the areas of contact which existed between SPP and our branches when we bought the company have become fewer with time. At Handelsbanken it is, of course, our branches that do business in close and direct relationships with every customer. Central marketing is therefore rare since each customer offering is unique," says Pär Boman.

 

Having two such different marketing approaches in the same corporate group is not the optimal situation for either party, he thinks:

"I won't go as far as to say that we have got in each other's way, more that we have moved in different directions. So when SPP was fully equipped, stronger than ever before and ready to go on the offensive, we were faced by a choice: either to separate SPP from the rest of the Group or to find a partner with the same focus and working methods. Storebrand made this choice simple. This will be a really good deal for both companies, their customers and employees."

 

Pär Boman also sees clear advantages for Handelsbanken.

"It is always easier to have one point of focus rather than two. We can now put all our efforts and resources into what is really Handelsbanken's unique feature: our strong, decentralised branch operations - which are now growing more quickly than ever before."

 

According to Ulf Riese, CFO of Handelsbanken, the transaction will also reduce the volatility in the Bank's results:

"When SPP became a for-profit company, we distributed SEK 2.8 billion to the policyholders and subsequently assumed a large part of all the risks and deficits that the policyholders had previously been responsible for alone. We are also still the only owner among the Swedish life insurance companies that has contributed its own funds and covered deficits on policyholders' accounts. New capital adequacy and solvency regulations mean that SPP has tied up more capital than anyone could have foreseen and also led to a form of central risk-taking on a large scale that we normally do not have in our decentralised business model. We will now have greater stability - and the shareholders, who have ultimately been responsible for the risk, will get back their money in the form of improved return on equity and higher earnings per share."

 

The deal with Storebrand does not mean Handelsbanken is leaving the occupational pensions market, according to Michael Zell, head of Handelsbanken Pensions & Insurance:  

"We are now starting collaboration with Storebrand in the area of occupational pensions - including product development and risk management. Handelsbanken's mutual funds will also be part of Storebrand's occupational pensions offering on the Swedish and Norwegian markets."

 

Handelsbanken Liv will continue to sell its occupational pension solutions via Handelsbanken's branches.

 

"Handelsbanken Liv's products and solutions have long been well integrated at the branches, not least the capital-guaranteed products, private pension solutions and other types of long-term savings. Handelsbanken Liv will therefore now be linked more closely to the branch office operations and to Handelsbanken Asset Management."

 

Pär Boman sums up:     

"We have sold a good company, at the right time and to the right company. I know that people often talk about win-win situations but this time it is really relevant - this is an excellent deal for everyone concerned."

 

 

 

The media and analysts are invited to attend a press conference at Handelsbanken today where Handelsbanken's CEO, Pär Boman will present the transaction.

 

Time: 10.00 a.m. CET today

Place: Handelsbanken's head office, Kungsträdgårdsgatan 2, Stockholm. (Please report to the reception)

 

The presentation from the press conference will be available on Handelsbanken's website (www.handelsbanken.se) from 10.00 a.m. today.

 

 

Handelsbanken, SPP and Storebrand will hold a joint press conference later today.

Time: 2 p.m. CET today.

Place: China theatre, Berzelii Park 9, Stockholm. (Please give your name at the entrance).

 

 

 

At 4.30 p.m. CET, Handelsbanken will hold a phone conference for analysts. Participants from Handelsbanken are Ulf Riese, CFO and Bengt Ragnå, head of investor relations.

Phone: +46 8-50 52 01 14   From outside Sweden: +46-8-50 52 01 14