95-per-cent yes to demutualisation of Nordea Liv I
“The customers have now clearly confirmed their support of the demutualisation of Nordea Liv I, and we are pleased that so many have taken the opportunity to vote regarding their future pensions. We will now go ahead and plan for the demutualisation. What is most essential now is the work towards attaining a solid value development from 2006 and onwards”, says Elisabeth Edström, Head of Marketing at Nordea Life & Pensions Sweden.
Next step in the process
Once the auditors have checked the voting procedure the Swedish Financial Supervisory Authority’s will scrutinise the demutualisation proposal to safeguard the rights of the policyholders.
In connection with the demutualisation scheduled for 1 January 2006 the company’s assets will be compared with the value of the insurance policies. If the value of the assets is lower than the value of the insurance policies, the value of the insurance policies must be reduced. Forecasts indicate, however, that this will not be necessary. At present the consolidation level is 98 per cent, an increase from 87 per cent in 2002.
Nordea will subsequently inject new risk capital in the order of SEK 800 million. The new risk capital can facilitate the utilisation of the best investment opportunities for value growth to thus realise a higher profit.
More information on the result of the demutualisation is available at www.nordea.se