Mandatum Life Insurance Company Limited (Mandatum Life) disclosed on 24 April 2018 that Mandatum Life and Danske Bank have agreed to continue their co-operation regarding the distribution and management of insurance products and the cancellation of the earlier agreed transfer of the insurance portfolio distributed by Danske Bank. The agreed transaction was subject to confirmation of the tax treatment.
Mandatum Life received a negative pre-ruling on the tax treatment of the transaction on 29 May 2018. However, Mandatum Life and Danske Bank have today agreed to continue their co-operation as agreed.
The parties of the transaction will appeal against the pre-ruling. If the tax treatment remains negative, Mandatum Life's financial risk is EUR 13 million.
Danske Bank will pay the agreed transaction price of EUR 197 million by the end of June 2018.