Norway's DNB, Sparebank 1 agree $2.4 bln insurance merger

Sparebank 1 Ostfold Akershus

24/09/2018 09:02

OSLO, Sept 24 (Reuters) - Norway's DNB  DNB.OL  and the
Sparebank 1 consortium of banks have agreed to merge their
insurance operations in a jointly owned company valued at 19.75
billion Norwegian crowns ($2.43 billion), the companies said on
Monday.
    The deal follows a preliminary agreement struck in June and
forms a major competitor to casualty insurers Gjensidige
 GJFS.OL , Tryg  TRYG.CO  and Sampo's  SAMPO.HE  If P&C, and
will also compete with life insurer Storebrand  STB.OL .
    DNB contributed 20 percent of the new unit's assets and will
buy a 15 percent stake from the other owners, with an option to
purchase another 5 percent, potentially taking its stake to 40
percent.
    The pro-forma profit after tax for the new company for 2017
was approximately 1.8 billion crowns.
    Completion of the deal, which depends on regulatory
approval, is tentatively set for Jan. 1, 2019, DNB said.
    Sparebank 1 Gruppen consists of 14 banks, including SR Bank
 SRBANK.OL , Sparebank 1 SMN  MING.OL  and Sparebank 1
Nord-Norge  NONG.OL .    
($1 = 8.1418 Norwegian crowns)

 (Reporting by Terje Solsvik; Editing by Emelia
Sithole-Matarise)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70; Reuters
Messaging: terje.solsvik.thomsonreuters.com@reuters.net))