Finnish insurance company Sampo has announced its intention to acquire all remaining shares of Topdanmark, the Danish property and casualty (P&C) insurer, for DKr33bn (€4.42bn).  

Sampo currently holds a 48.5% stake in Topdanmark, according to Reuters.  

The bid marks a 27% premium to Topdanmark’s latest closing share price.  

Sampo’s move is expected to increase its market share to around 20% in the Nordic P&C insurance sector, covering all insurance lines and customer segments in the region. 

The buyout is also anticipated to create a key P&C insurer in Denmark, with a combined market share of roughly 21% when including If P&C’s operations, a wholly-owned subsidiary of Sampo.  

Post-acquisition, Sampo plans to integrate Topdanmark’s P&C operations into If P&C’s pan-Nordic business structure, while keeping Topdanmark’s main office in Ballerup. 

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This will leverage complementary business models and distribution channels, providing opportunities for cross-selling and future growth.  

It also aims to enhance diversification and combine expertise in areas such as pricing and risk management to improve underwriting locally. 

The companies project the merger to yield annual cost savings of €65m.  

Sampo’s board of directors intend to appoint Peter Hermann, Group CEO of Topdanmark, as deputy CEO of If P&C Insurance Holding, and member of the Sampo group executive committee, contingent on completion of the offer. 

Hermann is set to continue as group CEO of Topdanmark until the integration with If P&C is finalised, while Morten Thorsrud will remain as CEO of If P&C Insurance Holding.  

Sampo group CEO Torbjörn Magnusson said: “Our and Topdanmark’s strategies have further aligned in recent years as pure P&C insurers. The unanimously recommended offer we are announcing today is the next logical step on this journey. By combining the businesses in a fully integrated Nordic operating platform, we can unlock growth and attractive synergies that will strengthen our position as a leading Danish P&C insurer.” 

Topdanmark deputy chair of the board of directors Jens Aaløse said: “We find that the Offer from Sampo represents attractive financial value for the shareholders of Topdanmark and an appealing opportunity for Topdanmark shareholders to take part in the commercial, strategic and financial value creation in the well-diversified Sampo Group with strong growth perspectives.” 

Sampo has declared this offer as its “best and final”.  The offer is expected to be settled by September 2024.