Finnish insurers transfer PE stakes

Suomi Mutual Life Assurance is reducing its operations and has transferred at least eight partial European private equity fund stakes to Mandatum Life Insurance.

Helsinki-based Suomi Mutual Life Assurance Company has transferred a portfolio of private equity fund stakes to Mandatum Life Insurance Company, a subsidiary of Sampo Group

Suomi did not return multiple requests for comment, but a source familiar with the matter said it is slowly winding down operations and the transfer will advance the run-off of its assets.

In March 2014, Suomi announced plans to sell its group pension portfolio to Mandatum. The total portfolio consisted of 2,300 policies and 34,000 members, a previous statement disclosed. Mandatum has also taken over a portion of the assets that cover the pension liabilities. The portfolio amounted to roughly a fifth of Suomi’s balance sheet and combined both assets and liabilities.

Suomi only transferred a portion of each private equity fund stake, to ensure the transaction would be fair toward both the life insurance policy holders that stayed with Suomi and the ones that moved to Mandatum, the source explained.

Mandantum declined to comment, but a statement disclosed the transaction was completed in December 2014.

The private equity funds include:

Fund name Vintage Size
Candover 2005 Fund 2005 €3.5 billion
ECI 8 2005 £255 million
European Property Investors 2004 €759 million
Frogmore Real Estate Partners 2006 £330 million
Industri Kapital 2004 2004 €825 million
MCH Iberian Capital Fund II 2003 €160 million
Nordic Mezzanine Fund III 2009 €240 million
Partners Group Asia-Pacific 2007 2007 $1.1 billion