Hindi nagbibigay ng serbisyo ang XM sa mga residente ng Estados Unidos.

Nordic $5 bln insurer M&A limits cross-border risk



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>BREAKINGVIEWS-Nordic $5 bln insurer M&A limits cross-border risk</title></head><body>

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Aimee Donnellan

LONDON, June 17 (Reuters Breakingviews) -Cross-border M&A often proves a dicey business. Venturing into unfamiliar markets with different regulatory frameworks can go awry: Prudential’s AIA tilt in 2010 didn’t even make it to the altar. A deal that would see Finland’s $21 billion Sampo SAMPO.HE take over Danish group Topdanmark TOP.CO for $5 billion, in contrast, looks one that could succeed.

Sampo CEO Torbjörn Magnusson has grounds to consolidate. Costs have been rising across the insurance sector due to inflation. For many insurers a lag has emerged between the increased expenses incurred from claims, and the speed at which they can raise premiums. Offsetting that by stripping out mutual costs makes sense, and Sampo’s digital nous around claims management could be applied to Topdanmark’s business.

Maybe it can, but Magnusson also has a range of buffers that slash the extent to which he’s taking a leap into the unknown. One is that he already owns nearly half of his target. Topdanmark, which specialises in insuring property and liability for accidents, controls over 14% of its domestic market. Sampo has been keen for some time: the group first took a stake in 2007, increased its stake to 23% in 2011, topped it up in 2016 and hit its current 48% level in 2021.

Owning half the company already cuts how much of his own Magnusson needs to give away. The 27% premium he’s advancing over Topdanmark’s undisturbed share price amounts to around 900 million euros, but he only needs to fork out about half that. He’s also paying in shares, and over the past year the Danish group’s share price is off 17% while Sampo’s has been flat.

Magnusson expects to deliver 65 million euros of cost synergies from the combination. Once those are taxed at Topdanmark’s 26% rate and capitalised they are worth 480 million euros. That implies Sampo is not overpaying – and if an extra 30 million euros of revenue synergies materialises the deal will start to look pretty compelling. Given this is cross-border M&A, though, it probably pays to think conservatively.

Follow @aimeedonnellan on X


CONTEXT NEWS

Finnish insurer Sampo has agreed to buy Topdanmark in an all-share deal that values its Danish rival at 33 billion Danish crowns ($4.7 billion), the two companies said on June 17.

Sampo already owns 48.5% of the Danish property and casualty (P&C) insurer, according to LSEG data.

Based on June 14 closing share prices, the offer represents a 27% premium for Topdanmark investors, the companies said in a joint statement.

The companies said they expect the acquisition to result in annual cost savings of 65 million euros ($69.5 million) for the merged group and a further 30 million euros in higher income per year.

Sampo said its offer was its “best and final” bid and that it would not be improved.

Shares in Topdanmark were up 21% by 0722 GMT on June 17.


Graphic: Sampo and Topdanmark share performance over three years https://reut.rs/4epDx9U


Editing by George Hay and Oliver Taslic

</body></html>

Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Babala sa Risk: Maaaring malugi ang iyong kapital. Maaaring hindi nababagay sa lahat ang mga produktong naka-leverage. Mangyaring isaalang-alang ang aming Pahayag sa Risk.