SpareBank 1 Sørøst-Norge

M&A Activity • Dec 12, 2023

Fremtind Forsikring and Eika Forsikring combine forces

Fremtind Forsikring and Eika Forsikring combine forces

Fremtind Forsikring AS and Eika Forsikring AS, and their respective owners SpareBank 1 Gruppen AS, DNB Bank ASA and Eika Gruppen AS, have entered into a memorandum of understanding on the 12th of December with the intention of merging the two insurance companies. The name of the combined unit will be Fremtind Forsikring.

SpareBank 1 Sørøst-Norge indirectly owns 6.28 % of the shares in SpareBank 1 Gruppen AS and will after the completion of the transaction own 51.44 % of the shares in Fremtind Holding.

Based on 30 June 2023 consolidated accounts, the transaction will result in increased equity for SpareBank 1 Gruppen of approx. NOK 7 billion. The majority shareholders’ (SpareBank 1 banks and LO) share of this increase is NOK 2.4 billion. SpareBank 1 Sørøst-Norge's share of this increase amounts to approx. NOK 152 million and will be recognized in the consolidated account when the transaction is completed in 2024. The effect on the bank's capital adequacy will be close to neutral, as the equity increase will be deducted in the capital adequacy calculation.

The merger is conditional on the parties entering into a transaction agreement with associated documents. The parties have already negotiated almost finished drafts of the agreement, and a final agreement is expected to be signed early in the first quarter of 2024. The implementation of the final transaction agreement will be conditional, among other things, on the parties obtaining all necessary authority approvals without conditions that are considered significantly burdensome. It is expected that the transaction will be completed in the summer of 2024 at the earliest.

Contact persons:

CEO Per Halvorsen, tel +47 934 07 441 mail; Per.Halvorsen@sb1sorost.no

CFO Roar Snippen, tel +47 976 10 360 mail; Roar.Snippen@sb1sorost.no

The above information is considered to be inside information pursuant to the Market Abuse Regulation (MAR) and is subject to the requirements of announcement pursuant to the Securities Trading Act section 5-12.

This notice is published on behalf of SpareBank 1 Sørøst-Norge by Roar Snippen, CFO at 07:30 (CET), 12. December 2023.