The Finnish Competition and Consumer Authority (FCCA) approved on 25 October 2018 the acquisition of Folksam Skadeförsäkring Ab’s entire share capital of by Fennia Mutual Insurance Company. The FCCA has concluded that the acquisition will not significantly impede effective competition on the Finnish market.
Fennia Mutual Insurance Company is the parent company of the Finnish Fennia Group. Fennia Group consists of Fennia, specialising in non-life insurance; Fennia Life, offering voluntary life, pension and deposit insurance products; Fennia Asset Management Ltd, offering asset management services and management services regarding alternative investment funds; Fennia Asset Management Ltd subsidiary Fennia Property Development Ltd; and Fennia-service Ltd, offering value added services to group company customers.
Folksam Skadeförsäkring Ab is a Finnish non-life insurance company that is part of the Swedish Folksam Omsesidig Sakförsäkring group. Folksam offers non-life insurance to private and corporate customers in Finland.
The regulatory reviews conducted by the FCCA did not reveal any harmful effects related to the acquisition. The cluster’s market share will not increase significantly in any insurance market sector, and following the sale, there will still be many actors in the market, and some of them have higher market shares than the cluster now created. The FCCA has concluded that the acquisition will not significantly impede effective competition in the Finnish market.
The FCCA’s decision includes business secrets of the parties involved. The decision will be published once the business secrets have been removed.
Further information: Research Officer Taru-Tuulia Tammi, tel. +358 (0)29 505 3024
According to the Competition Act, the FCCA must be notified of the transaction if the combined turnover of the parties to the corporate transaction exceeds 350 million euros and the turnover from Finland of at least two of the parties exceeds a combined total of 20 million euros. The FCCA will approve a corporate transaction if it has none of the harmful impacts referred to in the Competition Act. The FCCA will intervene in corporate transactions if its investigations suggest that the acquisition substantially impedes effective competition on Finnish markets or a substantial part of the markets, particularly through the creation or reinforcement of a dominant market position.
Read more about merger control.