Fremtind Forsikring AS and Eika Forsikring AS, and their respective owners
SpareBank 1 Gruppen AS, DNB Bank ASA and Eika Gruppen AS, have entered into a
memorandum of understanding on the 12th of December with the intention of
merging the two insurance companies. The name of the combined unit will be
Fremtind Forsikring.
SpareBank 1 SR-Bank currently owns 19.5 % of the shares in SpareBank 1 Gruppen
AS. After the completion of the transaction, SpareBank 1 Gruppen AS will own
51.44 % of the shares in Fremtind Holding.
Based on 30 June 2023 consolidated accounts, the transaction will result in
increased equity for SpareBank 1 Gruppen of approx. NOK 7 billion. The majority
shareholders' (SpareBank 1 banks and LO) share of this increase is NOK 2.4
billion. SpareBank 1 SR-Bank's share of this increase amounts to approx. NOK 470
million and will be recognized in the consolidated accounts in 2024. The effect
on the bank's capital adequacy will be close to neutral, as the equity increase
will be deducted in the capital adequacy calculation.
The merger is conditional on the parties entering into a transaction agreement
with associated documents. The parties have already negotiated almost finished
drafts of the agreement, and a final agreement is expected to be signed early in
the first quarter of 2024. The implementation of the final transaction agreement
will be conditional, among other things, on the parties obtaining all necessary
authority approvals without conditions that are considered significantly
burdensome. It is expected that the transaction will be completed in the summer
of 2024 at the earliest.
Stavanger, December 12, 2023
Contact:
Inge Reinertsen, CFO - tel. +47 909 95 033
The above information is considered to be inside information pursuant to the
Market Abuse Regulation (MAR) and is subject to the requirements of announcement
pursuant to the Securities Trading Act section 5-12.