AMWatch

SEB sells Danish pension business to Danske Bank

Sweden's SEB has agreed to sells its Danish pension business to Danske Bank for more than two times book value.

Photo: SEB

SEB has agreed to sell SEB Pension, the Swedish bank's Danish pension unit, to Danske Bank's pension unit, Danica, for DKK 5 billion (EUR 670 million) in cash.

According to SEB, the deal values SEB Pension at 2.3 times book value, and some 12 times estimated earnings.

SEB bought the life and pensions unit of British-owned Danish insurer Codan in 2005 for 2.7 billion. The unit is currently the fourth-largest commercial pension provider in Denmark with some 200,000 customers and about DKK 100 billion in assets.

With the acquisition, Danica will get a total of some 800,000 customers and a market share of about 19 percent, to rival the commercial pension leader in the Danish market, PFA Pension.

According to Danica, the acquisition will create cost synergies of some DKK 150 million per year. But in addition, Danica says it will benefit from SEB Pension's customer relationship knowledge. For a number of years, SEB Pension has been named the most popular pension provider in Denmark by customers, and Danica also says SEB Pension has superior digital front-end solutions for customers.

The sale is expected to be completed by next summer, pending regulatory approvals.

After the sale, SEB will offer wholesale banking to large corporates and financial institutions, as well as private banking and credit card services.

More from AMWatch

The ESG market is controlled by a few big investors

Finland's largest investor holds 62 percent of shares of multi-trillion ETFs offered by iShares and 64 percent of Xtrackers' equivalent offering. Having a few investors dominating ownership in this way is not good for the vehicles' liquidity and could be a big challenge facing the sector.

"We continue to see further growth in our Nordic book of business"

DECEMBER SERIES: What were the most important developments at some of the global asset managers present on the Nordic market in 2021, and what are their expectations for the coming year? AMWatch's December series is kicked off by Head of Nordics at State Street Global Advisors, Arnaud Bruyneel. 

Further reading

Latest news

Jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch