Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea — Merger or Acquisition (June 2002)
14 slides from Nordea Bank Abp's merger presentation, Jun 19, 2002
Slide 1: Sale of Tryg General Insurance
Presentation for Investors Sale of Tryg General Insurance 19 June 2002
Slide 2: Strategic rationale for sale
Strategic rationale for sale l Increases focus on core banking and asset accumulation businesses l Continue to provide full range of services to customers l Releases approx. EUR 600m of economic capital l Enhance - Earnings stability - Capital adequacy ratio - Increases capacity to buy back shares 2
Slide 3: Transaction overview
Transaction overview l Letter of intent signed between Nordea and Tryg i Danmark smba l Nordea to sell 100% of General Insurance (“Tryg”) to Tryg i Danmark smba l Sale price of EUR 760m in cash plus additional contingent consideration of up to EUR 90m l Exclusive bancassurance relationship establish
Slide 4: Transaction highlights
Transaction highlights l Premium of EUR 100m to Tryg shareholders’ equity as at 31 March 2002 of EUR 660m l Additional deferred contingent consideration of up to a maximum of EUR 90m l Releases approximately EUR 760m of regulatory capital and EUR 600m of economic capital l Enhances economic profit l
Slide 5: Summary transaction terms
Summary transaction terms l Letter of Intent signed; Share Purchase Agreement by end of June l Transaction approved by – Tryg i Danmark smba Board of Representatives – Nordea Board of Directors l Final sale price subject to EUR-for-EUR adjustment based upon NAV of Tryg 30 June 2002 vs.NAV 31 March 2
Slide 6: Key partnership arrangements
Key partnership arrangements l Exclusive bancassurance agreement between Nordea and Tryg – Nordea to sell Tryg non-life services – Tryg to sell Nordea banking and asset accumulation services l Nordea to continue to manage the investment portfolio of Tryg l Tryg retains Tryg & Vesta brands and existi
Slide 7: Repurchase of own shares
Repurchase of own shares l Intention to repurchase up to 150 million own shares – Equivalent to approx. 5% of the share capital l AGM of 24 April 2002 authorised buyback up to 10% of share capital – Board approval to commence a buyback programme (19 June 2002) l Share buybacks to commence after inte
Slide 8: Impact on capital ratios
Impact on capital ratios Actual 31 Post Repurchase of Effect on March 2002 transaction shares Tier 1 Capital (EUR bn) 10.0 10.0 9.3 Total Capital (EUR bn) 12.8 13.6 12.8 Core Capital Ratio (%) (Tier 1) 7.2 7.2 6.6 Total Capital Ratio (%) 9.2 9.7 9.2 Economic Capital (EUR bn) 10.7 10.1 10.1 8
Slide 9: Conclusion
Conclusion l Sale of Tryg enhances focus on core businesses l Asset management contract with Tryg maintained l Enhanced earnings stability for Nordea l Release of approx. EUR 600m of economic capital l Increased capacity for share buyback l Nordea continues to offer full range of services to its cus
Slide 10: Appendix
Nordea @ Appendix
Slide 11: Tryg business to be sold
Tryg business to be sold l Tryg Denmark l Dansk Kaution l Vesta l Tryg-Baltica International (UK & Denmark) l Nordea Ubezpieczenia (Poland, 93% owned) l Nordea Kindlustus (Estonia) l Nordea Finland (branch) 11
Slide 12: Legal structure
Legal structure l All General Insurance businesses transferred to ownership of Tryg General Insurance Holding A/S (Denmark) Tryg i Danmark 6.2% Nordea AB smba (Sweden) Nordea Insurance Holding (Denmark) Tryg A/S (Denmark) Tryg General Insurance Vesta Life Nordea Nordea Life Nordea Life Holdings A/S
Slide 13: Tryg key financials
Tryg key financials Income Statement (EUR mill.) 2001 Q1 2002 Gross Earned Premiums 1,845 505 Technical Result -5 -24 Operating Profit -18 -31 Balance Sheet (EURm) Investments 2,657 2,749 Shareholders Equity (pro forma) 608 660 Employees (full time equivalents) 4,290 4,430 13
Slide 14: Financial advisors
Financial advisors To Nordea: Credit Suisse First Boston To Tryg i Danmark: Fox-Pitt, Kelton 14