Denmark-based Topdanmark Forsikring has sold its life and pension business to banking giant Nordea for an agreed price of around €270m (£227m, $298m)
The acquisition bolsters Nordea’s life and pension arm in the Nordics and accelerates its strategic ambitions within the savings market.
It will also strengthen Nordea’s offering to retail customers in the life and pension segment in Denmark, which is the second largest life and pension market in the region.
Topdanmark Life is a life and pension company with assets under management of around €12bn (£10.1bn, $13.26bn) and has approximately 225,000 customers.
The firm will be integrated into Nordea and operate under the Nordea brand.
Snorre Storset, head of asset and wealth management at Nordea, said: “We are pleased to announce this acquisition. Topdanmark Life is a very good strategic fit and increases our exposure to the Danish retail savings market.
“We know Topdanmark from our current collaboration in non-life insurance and are looking forward to developing the Topdanmark Life business in Nordea. Going forward, our Danish customers will benefit from our market leading banking and savings offering. We will provide Nordea’s customers with Topdanmark Life products through our top-rated digital platforms and broad branch network.”
Peter Hermann, chief executive of Topdanmark, added: “For many years we have had an advantage by running both non-life insurance and life insurance within the Topdanmark Group benefiting both customers and shareholders.
“Nordea has the right requirements and ambitions to operate and further develop Topdanmark Life. We will continue to sell life insurance solutions, with the difference that in the future they will be from Nordea. We are looking forward to strengthening the strategic partnership between Nordea and Topdanmark.”
The transaction is subject to regulatory approvals and closing is expected in the second half of 2022.