Finnish insurers transfer PE stakes

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: