Veritas Pension Insurance and Pensions-Alandia have signed a letter of intent for the merger of the two companies. The aim is to create a pension company that will be the best choice on the market for SMEs and entrepreneurs.
The two companies have been engaged in co-operation since 1961 by virtue of a co-brokerage agreement, whereby they have shared equal responsibility for the management of Pensions-Alandia’s insurance portfolio and the handling of certain shared functions. The merger will further streamline the operations, since it will eliminate overlapping expenses, particularly in the area of administration.
The annual savings in administrative costs is estimated to be close to one million euro.
“This is good news for our customers. Better cost efficiency will have a positive effect on our client bonuses. At the same time, it provides us with possibilities to develop our services even further”, assures Carl Pettersson, CEO of Veritas.
“The merger will absolutely affirm our position as one of the four alternatives on the market. Veritas will continue to be the smallest pension company but with an extremely sound financial foundation. Small and medium-sized companies have different needs than large companies, and a small pension company will better understand and meet those needs.”
Operations will continue under the Veritas name
The merged company will continue to operate under the Veritas brand at its primary location in Turku.
If the merger plan is approved by the Boards of Directors and Annual General Meetings of both companies, and by the authorities, customers of Pensions-Alandia will automatically become customers of Veritas as of 1 January 2019.
“Due to our long shared history, I absolutely believe that Pensions-Alandia’s customers will be satisfied under our new merged concept. We have always had a service philosophy similar to that of Pensions-Alandia”, Pettersson states.
The merger will not require any actions on the part of Veritas or Pensions-Alandia customers. All insurance terms and conditions and pension benefits will also remain unchanged.
Following the merger, Veritas will have approximately 8,200 TyEL customers and 11,500 YEL customers. The company will manage the pension security of altogether about 114,000 individuals in Finland and a total of 3.5 billion euro in investments. These figures are based on information from 2017.
For further information, please contact:
CEO Carl Pettersson, tel. +358 (0)10 550 1600