Co-operation with Danske Bank continues – portfolio transfer cancelled
Mandatum Life Insurance Company Limited (Mandatum Life) and Danske Bank have today agreed to continue their co-operation and that the transfer of the insurance portfolio agreed earlier will not take place.
Mandatum Life disclosed in October 2016 that it would exercise its right to sell the insurance portfolio distributed through Danske Bank’s Finnish branch network to Danske Bank or to a third party appointed by it. The portfolio transfer was estimated to take place at the end of 2018, and it would have mainly concerned insurance policies sold to Danske Bank’s private customers. The insurance portfolio in question mainly consists of unit-linked insurance and loan insurance agreements.
This latest arrangement means the transfer of the portfolio will be cancelled and sales co-operation will be reinforced.
“We have a very successful history with Danske, and we are pleased that our co-operation will continue. I am confident that we will reclaim the number one position in our co-operation areas, such as loan insurance sales. Our new agreement is great for both our current and new bank customers,” says Mandatum Life’s Managing Director, Petri Niemisvirta.
“The continuation of co-operation is good news especially for customers. The loan insurance and investment and savings products related to the life insurance business are important to our customers. This long-term co-operation we have now agreed on enables the comprehensive development of products and services. Together we can ensure a complete service offering and a positive customer experience for our clients,” stresses Danske Bank’s Head of Wealth Management, Kimmo Laaksonen.
Commission structures in the new co-operation agreement differ from the ones used earlier, and Mandatum Life will pay higher commissions for both the new sales and the existing portfolio.
The co-operation agreement is valid for five-year periods at a time, but Danske Bank is entitled to extend it for a period of 15 years. Danske Bank has the right to buy the portfolio from Mandatum Life at the end of the co-operation. The agreement does not limit Mandatum Life in its choice of banking partner.
The transaction is subject to confirmation of the tax treatment. The transaction is expected to be concluded within three months, and once concluded, Mandatum Life will receive a transaction price of EUR 197 million from Danske Bank for the above arrangement.
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