Asset management group Invalda INVL has signed a deal in principle to acquire Finnish life insurance giant Mandatum Life.
Mandatum Life has nearly 30,000 customers across Lithuania, Latvia and Estonia, with total revenue in 2020 of €7.8m (£6.7m) and €22m (£18.9m) of premiums written.
The deal, which is expected to be completed in mid 2022, is subject to Baltic and Finnish regulatory approval for permissions and licencing.
Invalda INVL will launch a new company in due course to take over the Baltic life insurance business subject to required approvals.
Until completion of the deal, Mandatum Life will operate in the Baltics, while the Invalda INVL Group hopes to begin offering life insurance services to its customers in Lithuania, in collaboration with Mandatum Life by autumn 2021.
Commenting on deal, Darius Šulnis, president at Invalda INVL, said: “This transaction will allow us to offer solutions both for financial security and wellbeing that are tailored to the specific needs of each individual client.
“The growing assets that individuals and institutional investors are entrusting to the Invalda INVL Group, along with the biggest team in the Baltics working with those assets, allow us to scale-up investments in companies and businesses already operating or starting up in our home markets. This positively affects the development and growth of the Baltic region as a whole.
“The investment management and life insurance businesses have a lot in common and we believe that the transaction creates real value-add for all stakeholders.”
