STOCKHOLM – Nordea Bank said on Friday it would buy Topdanmark’s life and pension business, Topdanmark Life, for around 270 million euros ($299.4 million), as the lender seeks to expand its exposure to the Danish market.
Topdanmark Life, Denmark’s fifth largest commercial life insurance company, has assets under management of around 12 billion euros and about 225,000 customers.
Nordea said the agreed price was around 270 million euros after a pre-completion dividend had been distributed to Topdanmark, representing an estimated P/E multiple of about 13 times the projected 2022 net earnings.
The bank said the transaction would help lift its earnings per share and return on equity.
“Topdanmark Life is a very good strategic fit and increases our exposure to the Danish retail savings market,” Nordea said in a statement, adding the company will operate under the Nordea brand.
($1 = 0.9017 euros)