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

Asset management group, Invalda INVL, today announces that on 15 June 2021 it has signed a deal in principle to acquire Mandatum Life, one of Finland’s largest life insurance companies, which also operates in the Baltics through branch operations  across Lithuania, Latvia and Estonia respectively. Through this transaction Invalda INVL group is to offer customers more choice to strengthen their financial security and overall well-being.

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 expertise 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 reorganizing 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.”

The person authorized to provide additional information is:
Darius Šulnis, President of Invalda INVL