OSLO, NORWAY: Two Norwegian insurance companies, Fremtind Forsikring AS and Eika Forsikring AS, have agreed to merge in 2024, creating a new entity called Fremtind Forsikring. The merger is subject to regulatory approval and the signing of a final transaction agreement.
The deal involves the owners of the two companies, SpareBank 1 Gruppen AS, DNB Bank ASA and Eika Gruppen AS, who signed a memorandum of understanding on 12 December 2023. SpareBank 1 Sørøst-Norge, which indirectly owns 6.28% of SpareBank 1 Gruppen, will own 51.44% of Fremtind Holding, the parent company of the new insurer.
The transaction will increase the equity of SpareBank 1 Gruppen by about NOK 7 billion, based on 30 June 2023 consolidated accounts. The majority shareholders, SpareBank 1 banks and LO, will get NOK 2.4 billion of this increase. SpareBank 1 Sørøst-Norge’s share will be about NOK 152 million, which will be recognized in the consolidated account in 2024. The bank’s capital adequacy will be unaffected, as the equity increase will be deducted in the calculation.
The parties have already negotiated almost finished drafts of the transaction agreement, and expect to sign it early in the first quarter of 2024. The merger is expected to be completed in the summer of 2024 at the earliest, pending the necessary authority approvals without significantly burdensome conditions.
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