Time for Nordea Liv I demutualisation vote
In late September Nordea Liv I announced in a press release their intention to let policyholders vote regarding a possible demutualisation of the company, from a mutual insurance company to a profit-distributing company.
Concurrent with the proposed demutualisation, Nordea contributes risk capital (amounting to around SEK 820 million according to the current assessment). The capital contribution is estimated to make possible a more diversified investment mix and thereby improve the expected yield on the investments.
Demutualisation of Nordea Liv I requires a minimum of 50 percent of the votes. If more than 50 percent of those taking part in the voting, or alternatively, if 10 percent or more of all policyholders are against a demutualisation, Nordea Liv I will continue to be run as a mutual company. Nordea Liv I will then be obliged in the beginning of 2005 to write down the customers’ pension capital according to the Swedish Financial Supervisory Authority’s requirement.
- We hope that as many as possible will vote, says Britta Burreau, Managing Director of Nordea Life & Pensions Sweden. By voting the customers cannot only determine the company’s future, but also influence the size of their future pensions. According to our forecasts a demutualisation will also mean a reallocation can either be postponed or entirely averted.
A preliminary result of the vote will be announced at yearend. The final result will be announced in January 2005. Results will be published on the Internet and via a press release.
A brochure and prospectus for the demutualisation are available at www.nordea.se
To download a picture of Britta Burreau, Managing Director of Nordea Life & Pensions Sweden, click on the following link: http://hugin.info/1151/R/961488/138767.jpg