Sampo says to 'materially' cut Nordea stake over 18 months (updated)
24/02/2021 09:05
(Adds detail)
By Tarmo Virki
HELSINKI, Feb 24 (Reuters) - Finnish insurance group Sampo
SAMPO.HE , the largest shareholder of Nordea NDA.ST , said on
Wednesday that it would materially decrease its 15.9% stake in
the banking group over the next 18 months.
"Sampo continues its transformation towards a pure insurance
group with a focus on high-quality P&C insurance operations," it
said in a statement on its financial targets in 2021-2023.
Activist investor Elliott said earlier this month that Sampo
should sell its holding in Nordea this year and focus on its
insurance operations, saying the move would unlock 8 billion
euros of shareholder value for Sampo owners. urn:newsml:reuters.com:*:nL1N2K80E3
Sampo said it will target a combined ratio below 86% for the
2021-2023 period, and its largest unit, If P&C, will target a
combined ratio below 85%.
"The group's M&A ambition is limited to bolt-on transactions
within current markets," it said.
Sampo said it remains committed to paying a dividend of at
least 70% of group net profit excluding extraordinary items.
Earlier this month Sampo reported a surprise quarterly loss
as the company booked an 899 million euros impairment charge due
to a revaluation of its Nordea shares. urn:newsml:reuters.com:*:nL1N2KH0GJ
The pan-Nordic euros insurer said it had reduced the book
value of its Nordea shares to 7.50 from 8.90 euros. Shares in
Nordea NDAFI.HE were trading at 7.50 euros on Wednesday.
Shares in Sampo were 0.2% lower following the statement.
(Reporting by Tarmo Virki, editing by Louise Heavens)
((tarmo.virki@thomsonreuters.com; +372 564 4562 ;))