Insurance firm Storebrand has brokered a deal to acquire Danica Pensjonsforsikring (Danica) to strengthen its presence in Norway’s pension market.

As per the agreement, Storebrand will pay approximately $221m (NOK2.01bn) for a 100% stake in Danica, a subsidiary of Danske Bank.

Storebrand noted that Danica is the sixth-largest provider of defined pensions contributions in the country.

With nearly $3.3bn in total assets under management, Danica holds a 5% share of the $46.54bn (NOK420bn) Norwegian pension market.

Storebrand CEO Odd Arild Grefstad said: “With Danica on board, we strengthen our presence in the occupational pensions market for small and medium-sized enterprises and our personal risk offering. These are strategically prioritised growth areas for Storebrand.

“We look forward to combining our own expertise and technical solutions with Danica’s partners and Danske Bank’s professional distribution platform. This combination helps customers gain access to market-leading products and services, and we look forward to being able to welcome all of Danica’s customers to Storebrand.”

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By GlobalData

Apart from retail savings and guaranteed products, the firm also offers commercial and personal risk products that generate nearly NOK300m in annual premiums.

The deal awaits regulatory clearance and is expected to close in the first half of 2021.

Storebrand added the acquisition will not impact its ordinary dividend capacity for the financial year 2021.

Danske Bank Norway country manager Trond Mellingsæter said: “We look forward to the long experience, the business development and digital capabilities, as well as the solid products and solutions that Storebrand will add to our offering. Both parties are very committed to taking the steps necessary to make this a success which will benefit our customers.”