Co-operation between Danske Bank and Mandatum Life continued
We assisted Danske Bank in an arrangement, published on 24 April 2018, which concerns the continuation of the co-operation with Mandatum Life regarding the distribution of Mandatum Life’s insurance products through Danske Bank’s Finnish branch network. The transaction dates back to Mandatum Life disclosing in October 2016 that it would use its right to sell the insurance portfolio distributed by Danske Bank's Finnish branch network to Danske Bank or a third party appointed by Danske Bank. The agreed arrangement between Danske Bank and Mandatum Life means that the transfer of the insurance portfolio will not take place and instead, the co-operation between the parties will be strengthened.
Commission structures in the new co-operation agreement differ from the ones used earlier, and Mandatum Life will pay higher commissions for both new sales and the existing portfolio. The co-operation agreement is valid for five years at a time, but Danske Bank is entitled to extend it for a period of 15 years. Danske Bank also has the right to buy the portfolio in question from Mandatum Life at the end of the arrangement.
The agreed transaction is subject to confirmation of its tax treatment. Upon the closing of the transaction, Mandatum Life will receive a transaction price of EUR 197 million from Danske Bank for the arrangement. The amount is subject to corporate tax. The transaction is expected to close within 3 months.