News
Compre acquires Länsförsäkringar’s run-off operations
17 December 2008
Compre Holdings Ltd and Länsförsäkringar AB have reached an agreement whereby Compre Holdings buys Länsförsäkringar ABs reinsurance subsidiaries in run-off, Stockholm Reinsurance Company Ltd and Wasa International Insurance Company Ltd. Combined technical reserves of the two companies amount to approximately SEK 527 million (EUR 57 million).
Mikko Sinko, chairman of Compre Holdings, says: ‘Acquisition of this well-managed run-off operation further strengthens our already strong position in the Nordic region. Compre is becoming a household name in this market as a provider of exit and finality solutions and also professional consultancy and managed services for the owners of discontinued business.
‘On completion of this deal we will have acquired seven insurance companies in run-off acquired from Nordic owners – this speaks for itself,’ adds Sinko. ‘Compre’s strong position in the Nordic market, with offices in Finland and Sweden, and its main base and head office in London form a strong base for our ambitious European strategy.’
Sten Dunér, board chairman of Stockholm Reinsurance Company Ltd and Wasa International Insurance Co, comments: ‘Länsförsäkringar AB is streamlining its operations to the Länsförsäkringar Alliance’s three core businesses, namely non-life insurance, life assurance and banking, and for this reason it is natural that the run-off operations are sold.
‘Run-off became part of the Alliance when Wasa Försäkring was acquired in 1998 and was involved in the run-off of insurance and reinsurance portfolios which at the time amounted to SEK 2,222 million, corresponding to EUR 239 million,’ adds Dunér. Over the past ten years, run-off has generated a profit every year, amounting to a total of SEK 557 million or EUR 60 million for the period.’
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