Skandia and Storebrand Launch the Premier Nordic Property & Casualty Group
Storebrand and Skandia announce the launch of a New Group encompassing their Property and Casualty businesses which will form the premier Nordic P&C group (Newco).
* Newco will create the premier Nordic P&C company with combined 1997 pro forma P&C insurance premiums of approximately SEK 22.9 bn (NOK 22.3 bn.), Q:3 1998 pro forma total assets of SEK 51 bn (NOK 50 bn) andQ:3 1998 equity capital of approximately SEK 10.9 bn (NOK 10.6 bn).
* Newco's combined skill base will enable it to develop new products and service offerings faster than what has been possible up to now. This innovativeness will benefit existing and new customers. Furthermore, the creation of Newco will result in efficiency improvement that will increase its strength to the benefit of customers
* Newco will be an integrated Nordic P&C organization capable of attracting, retaining and developing highly skilled personell and management. Newcos position and growth prospects will increase longer term job security and career prospects for the employees.
* Coordination of activities will create economies of scale, lower per unit cost and increased resources for continuing investments in product and service development as well as alternative distribution to the benefit of customers and shareholders. The result will be the creation of a Nordic champion with the ability to participate in the continuing European restructuring.
* Newco is expected to yield annual cost savings of MSEK 450 (MNOK 440) realized over the course of 3 years. With a continuing convergence of the Nordic insurance markets, additional savings are expected to be captured.
* Newco will initiate a branding review and adopt a co-branding strategy utilizing the strong brands of the owners.
* It is the intention of Skandia and Storebrand to seek a stock exchange listing for Newco.
* Newco is aiming at further expantion on the Nordic market with special focusing on the Finnish and Danish markets.
* Newco will have an estimated 1998 pro forma Nordic market share in P&C insurance of 19 per cent, with a customer base of about 4 million. The market share for Newco in the Norwegian market will be discussed with the authorities. Newco is prepared to take required actions.
* Newco will be a Nordic company with its headquarter in Stockholm. The Private Division will be managed from Oslo, the Industrial Division will be managed from Stockholm and the Marine & Energy business will be managed from Norway.
For full press release, follow the enclosed link.
Questions regarding this press release can be directed to: <br>Försäkringsaktiebolaget Skandia: <br>Ulf Spång, Chief Financial Officer <br>Phone: +46-8-788 29 05 <br>Harry Vos, Group Controller <br>Phone: +46-8-788 36 43 <br>Birgitta Hammarström, Press Officer, <br>Phone +46-8-788 27 55 <br>