OREANDA-NEWS. December 14, 2009. From the beginning of the next year Swedbank Life Insurance business will be merged in the Baltic markets under the umbrella of European Company which will become one of the largest life insurance companies in the Central and Eastern Europe. By entering the final integration stage, Swedbank Life Insurance will be managing a portfolio of 216 000 customers or nearly one third of the overall Baltic life insurance market, reported the press-centre of Swedbank.

During 15 years of operation in Estonia and Lithuania and 4 years in Latvia Swedbank Life Insurance companies have earned permanent leading positions in the Baltic markets. After the merger of the largest life insurance service providers Swedbank Life Insurance SE (Societas Europeae) will manage EUR 4.4bn of risk portfolio, EUR 327m of assets and 270 thousand of life insurance contracts. At the end of Q3 Swedbank Life Insurance has achieved more than one third (37%) of the total life insurance market share in Estonia, one third (32%) in Lithuania and one fifth (18%) in Latvia.

“Changing our business model and mindset from local to regional was one of the Swedbank Baltic Banking priorities during 2009. The merger of Swedbank Life Insurance will become a background for our further harmonized steps in the three markets. The new status of the company and the new management model will facilitate further improvement of utilization of the shareholders equity, allocation of costs and human resources, improvement of services and products. In addition, the chosen legal model, European Company, makes the qualitative leap also in utilising the pan-European integration benefits”, - comments the merger Giedrius Dusevicius, Head of Baltic Banking Business Development Division.

The decision to merge Swedbank Life Insurance business in Baltic markets was made in December 2008 after the revision of company’s strategy with the goal to readjust to the transformed economic environment. Business reorganisation related with the company’s harmonisation in all three Baltic countries and deeper integration into the Swedbank Group was undertaken as the policy of future operations of the company. Therefore establishment of the European Company is part of business reorganisation including the development of the unified Pan-Baltic services, segregation of IT function and its migration into the parent company, regular improvement of processes and efficiency.

"During our long-term activities in Baltic markets we have earned trust and confidence of more 200 thousand customers. A part of them have taken care of their family members and insured their life with us, others have accumulated money for pension or children studies. Services, that we render, contributed a lot to the life quality of customers, therefore we assume the level of responsibility and importance to meet and exceed our costumers’ needs. It is a great challenge, but we believe that after business will be merged we will be able to deliver even better quality and more innovative solutions to our existing and potential customers”, - says Mindaugas Jusius, who will be appointed as Chairman of the Management Board in the merged company.

According to M. Jusius, comparing with other European countries, life insurance market in Baltic countries is under developed, therefore the joined forces will capacitate the company to support and lead market development. “We identified a lot of perspectives in life insurance business where protection demands by our customers are still uncovered. After the merger being able to use the best practices from several countries, we will be able to create new products corresponding these needs of people and the new and easier ways of serving them”, - comments M. Jusius.

Swedbank Life Insurance SE will come into force after all legal procedures are completed in each country of the Baltic States. On December, the 8th the shareholders of Swedbank Elukindlustus AS and Swedbank gyvybes draudimas AB approved merger agreement and other merge conditions. This convergence will be followed by the establishment of European Company of Swedbank Life Insurance with headquarter in Estonia, subsidiaries in Latvia and Lithuania. According to the plan the European Company should be registered on 31 December in Tallinn, on 12 January in Vilnius and later January in Riga.

The merger will not affect the valid insurance agreements of the merging companies or the rights of the insured persons or beneficiaries, therefore clients don’t need to amend the outstanding insurance agreements.