Storebrand to Sell Stake in Health-Insurance Venture to Ergo International

By Dominic Chopping

Norwegian financial services group Storebrand has agreed to sell its 50% stake in health-insurance joint venture Storebrand Helseforsikring to Ergo International, which will reach full ownership.

Financial terms weren't disclosed, but Storebrand said Thursday that it expects the deal to have a positive impact of around 1.1 billion Norwegian kroner ($102 million) on its results.

The venture, which is headquartered in Norway, offers medical expense insurance in corporate and retail markets in Norway and Sweden. Storebrand and Ergo each previously held a 50% stake.

"After a strategic review we believe that it is in the company's best interest to be further developed under the ownership of one owner," said Storebrand's Chief Executive Odd Arild Grefstad. "We are therefore pleased to have reached an agreement with our long-term partner Ergo, that enables us to continue as a distributor of health insurance in the Norwegian and Swedish market."

Closing of the transaction is expected to occur in the first quarter of next year, subject to approvals by the Norwegian Financial Supervisory Authority and the Norwegian Competition Authority.

Ergo International is a wholly-owned subsidiary of Ergo Group, a Munich Re company.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

September 21, 2023 03:40 ET (07:40 GMT)

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