Aktia Bank Plc
Stock Exchange Release
2 October 2018 at 1 p.m.
Aktia sells the rest of its holdings in Folksam Non-Life Insurance Ltd.
Aktia Bank Plc (Aktia Bank) has today entered into an agreement to sell its remaining 10% shareholding in Folksam Non-Life Insurance Ltd. to Fennia Mutual Insurance Company (Fennia). Simultaneously, the majority shareholder Folksam General (75%) and the minority shareholder Pension Insurance Company Veritas (Veritas) (15%) sell their shares in the company to Fennia.
Aktia Bank now focuses on carrying out the strategy focusing on wealth management and financial solutions while competitive non-life insurance and pension insurance products are offered through cooperation partners. Aktia Bank has today also signed a letter of intent with Fennia to investigate potential co-operation in respect of non-life insurance products going forward.
Aktia and Folksam started co-operation in 2012 when Folksam General became the majority shareholder (51%) of the Aktia Non-Life Insurance along with Aktia Bank (34%) and Veritas (15%). In 2015, in accordance with option in the initial agreement, Aktia Bank further sold 24% of its holdings of the company to Folksam General and Aktia Bank’s holdings hence decreased to 10%.
The transaction frees capital amounting to approx. EUR 10 million for Aktia Bank, corresponding the transaction price of the shares. The transaction implies a sales profit of approx. EUR 4 million, which will have a positive impact on the group´s operating profit. The transaction does not affect the group´s comparable operating profit. The ownership of shares is transferred when the transaction price is paid when closing the transaction. The transaction will have a minor positive effect on the Bank Group's capital adequacy.
The transaction still requires permission from the competition authority and reviewing by the Financial Supervisory Authority.
AKTIA BANK PLC
For more information, please contact:
Executive Vice President Juha Hammarén, tel. +358 40 031 8588
Executive Vice President Anssi Rantala, tel. +358 50 401 4434
Media:
Director Communications, Henna Tuominen, tel. +358 50 570 5080
Distribution:
Nasdaq Helsinki Ltd
Central media
www.aktia.com
Aktia provides a broad range of solutions within banking, asset management, insurance and real estate agency. Aktia operates mainly in coastal areas and inland growth areas. Aktia has about 380,000 customers who are served at branch offices and via web, mobile interfaces as well as telephone services. Aktia's share is listed on the list of Nasdaq Helsinki Ltd. For more information about Aktia see www.aktia.com.