Storebrand to Sell Stake in Health-Insurance Venture to Ergo International
September 21 2023 - 2:56AM
Dow Jones News
By Dominic Chopping
Norwegian financial services group Storebrand has agreed to sell
its 50% stake in health-insurance joint venture Storebrand
Helseforsikring to Ergo International, which will reach full
ownership.
Financial terms weren't disclosed, but Storebrand said Thursday
that it expects the deal to have a positive impact of around 1.1
billion Norwegian kroner ($102 million) on its results.
The venture, which is headquartered in Norway, offers medical
expense insurance in corporate and retail markets in Norway and
Sweden. Storebrand and Ergo each previously held a 50% stake.
"After a strategic review we believe that it is in the company's
best interest to be further developed under the ownership of one
owner," said Storebrand's Chief Executive Odd Arild Grefstad. "We
are therefore pleased to have reached an agreement with our
long-term partner Ergo, that enables us to continue as a
distributor of health insurance in the Norwegian and Swedish
market."
Closing of the transaction is expected to occur in the first
quarter of next year, subject to approvals by the Norwegian
Financial Supervisory Authority and the Norwegian Competition
Authority.
Ergo International is a wholly-owned subsidiary of Ergo Group, a
Munich Re company.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
September 21, 2023 03:40 ET (07:40 GMT)
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