Invalda INVL agrees deal in principle to acquire Mandatum Life’s Baltic insurance business

Asset management group, Invalda INVL, today announces that it has signed a deal in principle to acquire the business in the Baltic countries of Mandatum Life, one of Finland’s largest life insurance companies, which operates in the Baltics through branch operations across Lithuania, Latvia and Estonia respectively.

Mandatum Life has nearly 30,000 customers across the Baltic countries and total revenue in 2020 was EUR 7.8million with EUR22million of premiums written.

Completion of the transaction is anticipated for the middle of 2022 subject to Baltic and Finnish regulatory approval for permissions and licencing. A new company to be established by Invalda INVL in due course will take over the Baltic life insurance business subject to required approvals.

Until completion, Mandatum Life will operate in the Baltics as is with all customers wanting to acquire its life insurance products being able to do so through existing Mandatum Life branches and licenced product distributors. In addition, the Invalda INVL Group hopes to begin offering life insurance services to its customers in Lithuania, in collaboration with Mandatum Life prior to completion by Autumn 2021.

By combining Invalda INVL’s 30 years of investment experience with Mandatum Life’s Nordic life insurance expertise and traditions in the Baltic countries, the Invalda INVL Group will seek to offer a variety of life and health insurance optionality plus long-term investment and pension accumulation solutions. It will also contribute to employers’ corporate social responsibility with solutions that help organisations care for both employees’ long-term incentives and financial security.

Darius Šulnis, President at Invalda INVL, commented:
This transaction will allow us to offer solutions both for financial security and well-being that are tailored to the specific needs of each individual client. We aim to be the first and best choice for customers when it comes to long-term saving and management of personal finances.”

Šulnis added: “It is noteworthy, the addition of Mandatum Life’s team will strengthen and enlarge the group’s exper-tise in investments and life insurance. This transaction is an excellent growth opportunity for the existing employees of the Invalda INVL group and Mandatum Life, as well as for the new ones who are keen to help create financial well-being and are want to work on a team that makes real decisions and achieves positive changes.“

Šulnis added: “The growing assets that individuals and institutional investors are entrusting to the Invalda INVL Group along with the biggest team in the Baltics working with those assets, allow us to scale-up investments in companies and businesses already operating or starting up in our ‘home markets’. This positively affects the development and growth of the Baltic region as a whole. The investment management and life insurance businesses have a lot in common and we believe that the transaction creates real value-add for all stakeholders.”

Sanna Rajaniemi, the Senior Vice President responsible for Mandatum Life’s Baltic operations, commented:
We have been successful in re-organizing and growing our business in the Baltics. We have sought growth from external sales channels and saw the results we were targeting. Great client and staff satisfaction figures, in addition to our good financial performance, told us we were doing something right. In the past year, Mandatum has reviewed its business strategies and focus areas, and Invalda INVL’s offer came at the right time with the strategic changes.”

Invalda INVL

Invalda INVL is a leading asset management group which is open and growing, invests with clients, and creates financial wellbeing for people through its work. The group’s companies, operating in Lithuania and Latvia, serve over 240,000 individual and institutional clients from the region and abroad. Those clients have entrusted the Invalda INVL group with more than EUR 1.3 billion of assets for management in a variety of asset classes, including pension and mutual funds, individual portfolios, and private equity and other alternative investments. The shares of Invalda INVL have traded on the Nasdaq Vilnius stock exchange since 1995.

Mandatum Life

Mandatum Life is a Finnish provider of financial services and a successful part of the Sampo Group. Mandatum Life provides its customers with  comprehensive services for building wealth and preparing for the future. Mandatum Life’s services include unit-linked insurance and wealth management, saving and investing services, personal insurance, pension and reward solutions for companies, as well as related consultation services. Mandatum Life operates in Finland  and the Baltic countries. In Estonia, Latvia and Lithuania, Mandatum Life has a total of 83 employees.

Mandatum Life (formerly Sampo Life) has operated in Latvia since 1997, in Estonia since 1999 and in Lithuania since 2000, focusing on life insurance and investment solutions for retail and asset management customers.