Aktia Oyj : 27.01.2012 Aktia Plc - Aktia initiates cooperation within non-life insurance with Folksam

Aktia plc
Company Announcement Aktia Plc - Aktia initiates cooperation within non-life insurance with Folksam Stock exchange release 27.1.2012 at 10.00 a.m.

Helsinki, Finland, 2012-01-27 09:00 CET (GLOBE NEWSWIRE) --  

Aktia initiates cooperation within non-life insurance with Folksam

In accordance with company strategy, Aktia focuses on strengthening and deepening customer relations. Insurances are an important part of the product offering. The cooperation with Folksam and Veritas will enable Aktia to offer the customers broader and more competitive range of non-life and pension insurance.

Today, Aktia has entered into an agreement to sell 51% of Aktia Non-Life Insurance to Folksam General and 15% to Veritas Pension Insurance. Further, Folksam receives an option to buy an additional 24% of Aktia Non-Life Insurance within 3 years.

Aktia continues to sell non-life insurance under the Aktia brand and pension insurance under the Veritas brand as part of its customer solutions. Folksam is then the main owner of the non-life insurance company, conducting insurance production.

Folksam comprises Folksam General and Folksam Life, and is a strong player in both non-life and life insurance as well as saving. Folksam's market share of the total non-life insurance market in Sweden is approx. 15%. Folksam General has Nordic ambitions and acquires the stake in Aktia Non-Life Insurance.

Aktia non-life insurance company will remain a Finnish company with a strong owner base and an ambition to grow.

- The cooperation with Folksam and Veritas is good news both for Aktia's customer and for the personnel of the non-life insurance company. We look forward to being able to offer our customers a further improved and more competitive range of insurance products, says Jussi Laitinen, Managing Director of Aktia.

- We are sharpening Folksam through strategic cooperation in another Nordic country. Our cooperation with Aktia Non-Life Insurance is a first expansive step and an important part of Folksam's strategy for the Nordic insurance market, says Stefan Holm, Head of Partner BA at Folksam.

Aktia receives a cash payment of EUR 31 million for 66 % of the shares of the non-life insurance company. This sum exceeds the company's book value (NAV) to some extent, and results in one-off income of approx. EUR 5 million. The transaction is planned to take place during the first quarter of 2012. The transaction decreases Aktia plc's balance sheet by approx. EUR 160 million, operating expenses by approx. EUR 20 million per annum, and reduces the volatility of Aktia's result.

The agreement is subject to the Finnish Financial Supervisory Authority's approval of Folksam and Veritas as new owners of the non-life insurance company.

A press and analysts' conference will be held on 27 January 2012 at 1 pm at Aktia's Head Office, Mannerheimintie 14 A, 3rd floor.

AKTIA PLC

For more information, please contact:
Jussi Laitinen, Managing Director, tel. [phone]
Stefan Björkman, Deputy Managing Director, CFO, tel. [phone]

Media contacts:
Göran Stenberg, Head of Communications, tel. [phone]

From:
Anna Gabrán, Investor Relations Manager, tel. [phone]

Distribution:
NASDAQ OMX HelsinkiLtd
Central media
www.aktia.fi

Aktia Group provides a broad range of products within banking, insurance and real estate agency. Aktia operates mainly in coastal areas and inland growth areas. Aktia has about 400,000 customers who are served by nearly 1,400 employees at 70 branch offices and via Internet and telephone services. Aktia's shares are listed on the list of NASDAQ OMX Helsinki Ltd.