SEB will simplify the structure of the Baltic life insurance business
SEB’s ambition is to improve the value proposition of life and pension insurance services and solutions for clients in all three Baltic countries. Therefore, SEB has decided to simplify the operation model and consolidate the Baltic life insurance companies.
In the three Baltic countries, SEB has three legal entities: SEB Elu- ja Pensionikindlustus in Estonia, SEB dzīvības apdrošināšana in Latvia, and SEB Gyvybes draudimas in Lithuania, as well as the Riga branch of a foreign company, Life and Pension Holding AB, which manages life and pension insurance responsibilities in the Baltics. SEB’s Baltic life insurance companies offer a wide range of life insurance and savings solutions and have 198,000 clients. Baltic life insurance companies have a total market share of 27% and assets worth 542 million euros.
In 2018, SEB will combine the three legal entities operating in the Baltic life insurance business into one company, the Riga branch of the foreign company Life and Pension Holding AB will be terminated, and the new company will be named SEB Life and Pension Baltic SE (SE – Societas Europaea, European company). The headquarters of the new company will be located in Riga, its branches in Estonia and Lithuania. It is expected, that the consolidation process be completed by early 2019. On July 13, SEB took the first steps to fill in prerequisites of the legal merger process by submitting a draft of Merger Agreement to State Enterprise Register of Latvia and notification to the Latvian Financial Supervisory Authority (FKTK) regarding intention to open branches in Estonia and Lithuania. The Estonian and Lithuanian financial supervision authorities have been informed and the process of implementing the necessary co-operation has started.
Indrek Holst, Chairman of the Management Board of SEB Elu- ja Pensionikindlustus: ‘In view of the demographic and economic situation, the need of SEB’s clients for life insurance and retirement benefits will continue to increase in the future. The merger of companies is a decision that allows, in the long run, offering our customers the best solutions in the three Baltic countries and for us to be an even better service provider. SEB has offered pension and life insurance solutions in Sweden, the Baltics, and 12 more countries all over the world for a long time. The needs of customers are not different across countries; they are rather similar; therefore, in a longer perspective, it is important how efficiently we are able to apply the knowledge, expertise and experience of different countries across borders. This can be done much more efficiently in the Baltic States within one company.
Over the last few years, SEB’s life insurance and savings results have improved dramatically throughout the Baltics. Customer surveys and business analysis of SEB Baltics show that the need for economic security throughout the life of a customer has increased over the years. The commencement of the merger process will not affect the customer service. Nor will the decision affect the pension funds of Estonian residents, which will be managed by SEB Varahaldus also in the future. Additional information on the progress of the merger will be published after the registration process and the necessary approvals.
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