Norway

SpareBank 1 and DNB join forces for a new insurance company

SpareBank 1 and DNB merge their insurance departments forming country’s third largest insurance company with nearly 1,000 employees.
The agreement between the two banks was signed on Monday. They are yet to decide the new name of the company.

The new company gets closer to 1,000 employees. Banks will now apply for approval from the authorities, and the plan will take place on 1 January 2019.

“The merged company will strengthen the distribution of insurance in banks across the country through banks 360 local offices, mobile banking, online banking and customer centers,” says SpareBank 1 in a press release.

“In the merger agreement, an exchange ratio of 80 per cent has been assumed for SpareBank 1 Gruppen and 20 per cent for DNB. This exchange rate is based on the negotiated market value of the two non-life insurance companies, it is stated in a stock exchange announcement from SpareBank 1 SMN.

The merger of this occurs by DNB Forsikring AS merges with SpareBank 1 Skadeforsikring AS. The new company is valued at NOK 19.75 billion.

SpareBank 1 Gruppen will have a 65 percent stake and DNB 35 percent in the new company, and DNB therefore pays 2,96 billion kroner to buy 15 percent of the shares.

The company continues SpareBank 1’s agreement to deliver products to LO’s 930,000 members through the brand LOfavør.

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