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 and occupational pensions including the management of pension capital certificates and paid-up policies, to companies in the private and public sectors.
"We are delighted to have found such a strong buyer in the shape of DNB for KLP Bedriftspensjon. We are confident that the company and our customers will benefit from becoming part of a larger community,” KLP group 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 is becoming even more important.
"KLP Bedriftspensjon has a strong position as a provider of public sector-related businesses, and has invested in index-linked funds and sustainable management processes. These are initiatives that we look forward to continuing under the auspices of 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 sector occupational pensions at the beginning of the year, KLP Bedriftspensjon has less strategic importance for the company. It also said that the private occupational pensions market is in a state of change.
"It requires significant investment to achieve profitability, and that involves measures such as boosting volume and IT investments. DNB already holds a solid position in this market, and has the muscle to do what it takes,” 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 of Norway and the Norwegian Competition Authority and is expected to be completed during the third quarter of 2020.
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