ICMIF member LocalTapiola (LähiTapiola, Finland) is continuing its growth strategy and has agreed to acquire a 70% majority stake in Suomen Vahinkovakuutus Oy, better known as POP Insurance. LocalTapiola says the acquisition will further strengthen the mutual insurer’s ability to serve its customers who prefer digital channels for their insurance needs. The agreement also gives the LocalTapiola Group the opportunity to develop forms of cooperation with POP Banks.
“Our goal is to offer our customers the best personalised service in the industry, locally and digitally. POP Insurance has significant expertise in digital insurance sales, digital marketing and building digital purchase and transaction paths. The acquisition will allow us to combine our know-how and analytics expertise to develop our digital non-life, life and wealth management businesses. This will enable us to better serve customers who prefer to do their transactions online. The acquisition also increases our opportunities to develop local cooperation with POP Banks,” said Juha Koponen (above right), President and CEO of the LocalTapiola Group.
“Suomen Vahinkovakuutus Oy is entering its next phase of growth. LocalTapiola, as a major mutual regional player, is a natural partner for the POP Bank Group. With the transaction, the POP Pankki Group is focusing more strongly on its growth strategy in the banking segment. We will continue to be a co-owner of Suomen Vahinkovakuutus, as we also want to be involved in the development of the insurance sector and offer our customers insurance products that meet their needs,” said Jaakko Pulli (above left), CEO of POP Pankkeskus.
POP Insurance will become part of the LocalTapiola Group upon completion of the transaction. POP Vakuutus will continue to operate as an independent company and its brand will be retained.
Juha Koponen, President and CEO of LocalTapiola Group said: “POP Vakuutus will have a solid and reliable owner in LocalTapiola. Together we will be able to offer POP Vakuutus’ customers a wider range of products and services.”
POP Insurance has been fully owned by the POP Bank Group, which also includes Suomen Vahinkovakuutus Oy and which continues to own 30% of POP Insurance. POP Insurance employs more than 120 people and its employees will continue to work for the company. No staff changes are planned at POP Insurance or LocalTapiola as a result of the transaction.
The completion of the acquisition is subject to the approval of the Finnish Competition and Consumer Authority and the Finnish Financial Supervisory Authority. The transaction is expected to be completed by summer 2023.