SAMPO PLC STOCK EXCHANGE RELEASE 20 October 2016 at 2:00 pm
Mandatum Life will not prolong the agency agreement with Danske Bank
In connection with the acquisition of Sampo's banking operations by Danske Bank A/S in early 2007, Sampo Bank plc (now Danske Bank Plc), and Sampo Life Insurance Company Ltd (now Mandatum Life Insurance Company Ltd) signed an agency agreement that guaranteed Sampo Life the exclusive right to sell life and pension insurance products through Sampo Bank's branch network in Finland.
Mandatum Life has decided not to prolong the agency agreement as of 31 December 2016. In relation to the agency agreement Mandatum Life has the right to sell the insurance portfolio sold through Danske Bank's branch network in Finland, to Danske Bank. Mandatum Life will decide by the end of October 2016 whether it will use this option.
In case Mandatum Life will use its option the valuation of the portfolio will be conducted by a third party in accordance with the terms and conditions of the bank transaction agreement referred to above. The valuation is estimated to take until the summer of 2017 and the transfer of the portfolio is estimated to take place during the fourth quarter of 2017. The transfer is subject to regulatory approvals.
The portfolio consists of 151,000 policies and the technical reserves related to the portfolio amounted to EUR 3,060 million at the end of 2015. The portfolio accrued premiums of EUR 453 million in 2015 and contains almost exclusively unit linked and loan insurance products. The amount of with profit technical reserves is EUR 212 million.
SAMPO PLC
Investor Relations and Group Communications
Further information:
Jarmo Salonen
Head of Investor Relations and Group Communications
tel. +358 10 516 0030
Distribution:
Nasdaq Helsinki
London Stock Exchange
The principal media
Financial Supervisory Authority
www.sampo.com (http://www.sampo.com/)
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Sampo Oyj via Globenewswire
