Kommunal Landspensjonskasse (KLP) has sold its wholly-owned pensions subsidiary, KLP Bedriftspensjon AS, to DNB Livforsikring AS, the bank’s life insurance arm for an undisclosed amount.
Established in 2006, KLP Bedriftspensjon AS offers defined contribution pensions including the management of pension capital certificates and paid-up policies, to companies in the private and public sectors.
“We are very pleased to have found such a strong player as DNB, the buyer of KLP Bedriftspensjon. We are confident that the company and our customers will benefit from being part of a larger community,” KLP CEO Sverre Thornes, said.
DNB Livsforsikring CEO, Anders Skjævestad, said that DC pensions are a focus area for DNB, and that with low interest rates and demographic changes, saving for a pension has become even more important.
“KLP Bedriftspensjon has a strong position as a supplier of defined contribution pensions to public-sector enterprises and has focused on index funds and sustainable management. These are initiatives that we want to continue under DNB. As part of this, we will also be launching new sustainability profiles for defined contribution pensions this autumn,” he said.
KLP said that due to changes in public occupational pensions at the beginning of the year, KLP Bedriftspensjon has less strategic importance for the company.
“It requires a considerable effort to achieve profitability, and this means, among other things, increasing volume and IT investments. DNB already has a solid position in this market, and the muscles to do what is needed,” Thornes said.
KLP Bedriftspensjon had 3,183 corporate customers at the end of the first quarter of 2020, which comprise a total of 69,232 active members and owners of pension capital certificates and paid-up policies. Total assets are NOK 6.98bn. The company has nine employees and an office in Oslo.
The sale requires approvals from the Financial Supervisory Authority and the Competition Authority and is expected to be completed during the third quarter of 2020.
Latest News
-
European DC assets expected to pass €10trn by 2030
-
TPO increases output despite pandemic challenges
-
News in brief: 23 July
-
Netherlands’ ABP funding ratio rises to 104.5% in Q2
-
Institutional investors have ‘increased appetite’ for indexed FI strategies – SSGA
-
Nordea Asset Management’s inflow impacted by €3.7bn Danish pension business divestment
How the US’s robust securities law can benefit European investors
Over recent years several financial scandals have shocked investors, such as the Danske Bank money laundering case. When a scandal like this occurs, investor returns suffer, which is why many seek redress. Many European investors seek to recover assets lost as a result of securities fraud through U.S. courts, with their robust securities laws.
In this podcast, Jeremy Lieberman, Managing Partner at Pomerantz LLP, talks to European Pensions Editor, Natalie Tuck, about how European investors can use U.S. courts to recover assets lost to securities fraud and the challenges facing investors seeking compensation.
In this podcast, Jeremy Lieberman, Managing Partner at Pomerantz LLP, talks to European Pensions Editor, Natalie Tuck, about how European investors can use U.S. courts to recover assets lost to securities fraud and the challenges facing investors seeking compensation.
Podcast: Opportunities in Chinese equities
China was the first country to be impacted by the coronavirus outbreak, which lead to its economy plummeting. Since then, however, the country has managed to keep outbreaks of the virus under control, and is experiencing a V-shaped recovery with many areas returning to normal.
In this podcast, David Choa CFA, Head of Greater China Equities at BNP Paribas Asset Management talks to European Pensions Editor, Natalie Tuck, about China, its position within the global economy and the potential institutional investor opportunities within Chinese equities.
In this podcast, David Choa CFA, Head of Greater China Equities at BNP Paribas Asset Management talks to European Pensions Editor, Natalie Tuck, about China, its position within the global economy and the potential institutional investor opportunities within Chinese equities.
Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows
Europe’s pensions challenges
Francesca Fabrizi meets Matti Leppälä, Secretary General and CEO of PensionsEurope, to discuss the key aims and objectives of the association today.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories