The asset management group Invalda INVL is increasing the share capital of the company INVL Life, which is seeking an insurance company licence, from EUR 7.5 million to EUR 48 million. That is the largest share capital among life insurance companies registered in the Baltic countries.
INVL Life’s resources will be invested in a variety of securities, some of which will be investments managed by the Invalda INVL group.
“We are taking yet another step in preparing to assume the life insurance business that is being acquired. Looking to the long-term, we are forming a share capital whose size would be sufficient for the agreed takeover of Mandatum Life’s insurance portfolio and further development of the life insurance business,” Invalda INVL President Darius Šulnis says.
INVL Life, established last August, has applied to the Bank of Lithuania for an insurance company licence.
Invalda INVL, aiming to offer clients more solutions for their financial security and well-being, on 15 June last year signed an agreement with Mandatum Life Insurance Company Limited to acquire that company’s life insurance business in the Baltic countries.
Last October, Invalda INVL received the permission of Lithuania’s Competition Council to complete the insurance business acquisition. Required licences and permits from supervisory institutions in the other Baltic countries and Finland are now awaited and, as planned, completion of the transaction is envisaged by the middle of this year.
On completion of the transaction, INVL Life will assume all of Mandatum Life’s insurance business in the Baltic countries, which includes approximately 30,000 clients of the Latvian, Lithuanian and Estonian branches, their insurance portfolio, the employees working in the Baltic branches, and commercial agreements and other assets and liabilities associated with the operations of the branches.
About Invalda INVL
Invalda INVL is a leading asset management group which is open and growing, invests with clients, and creates well-being for people through its work. The group’s companies, operating in Lithuania and Latvia, serve over 250,000 individual and institutional clients from the region and abroad. Those clients have entrusted the Invalda INVL group with more than EUR 1.5 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.