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EUREKO COMPLETES GLOBAL BUSINESS TRANSFER

 EUREKO COMPLETES GLOBAL BUSINESS TRANSFER
 AMSTERDAM, The Netherlands, Aug. 17 /PRNewswire/ -- The pan-European


insurance group Eureko today transferred its insurance businesses worldwide into the jointly owned company Eureko B.V. The value placed on the assets and businesses acquired exceed 650 million ECU. The Amsterdam based Eureko B.V. will now proceed to implement and develop the international strategy of the group.
 The four partners in the group are the Dutch insurance group AVCB, the UK life insurer Friends Provident, the Danish financial group Topdanmark A/S and the Swedish insurance group WASA. The four signed an agreement in March setting out the terms of cooperation on the basis of Eureko B.V. as a jointly owned company with no single dominant shareholders. Eureko B.V. will provide crossholdings between the partners, and will undertake the future international insurance business development for the four companies. Eureko B.V. will be responsible for building cooperation between the partners, and will seek to expand by attracting a limited number of new partners.
 Today, the majority of the partners' non-domestic insurance activities are being transferred to Eureko B.V. Also, Eureko B.V. acquires a ten percent shareholding in AVCB Holding and ten percent of the shares in Topdanmark. After these transactions, WASA, Friends Provident and AVCB will transfer their shareholdings in Topdanmark, bringing the total Eureko B.V. shareholding in Topdanmark to 27 percent. Finally, Eureko B.V. will acquire a shareholding of at least ten percent in WASA upon its demutualization, planned for the beginning of 1993. The level of shareholdings in the partners will be increased over time to ensure closer integration of the group.
 After the completion of the agreed transactions, AVCB, Friends Provident and WASA will each own 29 percent of Eureko B.V. and Topdanmark will own 13 percent. According to the agreements between the partners, Topdanmark has an option to acquire additional Eureko B.V. shares, bringing their ownership to 21 percent.
 Further details of the transfers are set out in appendix 1. In consideration for the activities transferred, the partners receive shares in Eureko B.V. All transactions take place on the basis of an independent valuation prepared by Morgan Grenfell, the British merchant bank. The value placed on the assets and businesses acquired by Eureko B.V. exceeds 650 million ECU.
 Eureko has recently received a Letter of Comfort from the EC Commission, permitting the establishment and continued development of Eureko.
 Carl Erik Hedlund, the chairman of the Supervisory Board, said today: "I am very pleased that despite the complexity and number of transactions involved in establishing Eureko as a major insurance group it has been achieved with the minimum of disruption to the partners' daily operational activities and according to the timetable set out at inception. Eureko is now looking for new European partners with a similar clear strategy and commitment. It has also installed a management team from the partners' own resources which has strong experience in international development and at the same time brings Eureko B.V. the flavor of each of the partners. This team has produced a strategic plan for Eureko's development which the company can now start to implement. Eureko is looking forward to the opportunities that should be offered by simultaneous pan-European development with Eureko B.V. at the core of the expansion."
 The managing director of Eureko is Jeff Medlock, previously AVCB. Furthermore, today Ernst Jansen from AVCB and Lennart Nyberg from WASA have been appointed members of the executive board. Rolf Hof from AVCB and Ole M. Meyer from Topdanmark have been appointed assistant directors.
 Business To Be Transferred To Eureko
 The Partners are transferring the following non-domestic businesses to Eureko, subject to regulatory approvals:
 TERRITORY BUSINESS PARTNER
 Australia Friends' Provident Life Friends'
 Assurance Provident
 Company Limited (life assurance)
 Belgium CB Direct AVCB
 (life and general insurance)
 Canada/USA Seaboard Life (life assurance) Friends'
 Provident
 Italy(A) Siat Vita (life assurance) Friends'
 Provident
 Luxembourg Risk And Insurance Services SA Topdanmark
 (captive insurance management) And WASA
 Poland TopWASA A/S Topdanmark
 (insurance and financial services) And WASA
 Portugal(A) BCP/Occidental Group AVCB and
 (life and general insurance Friends'
 and asset management) Provident
 Spain(A) Kairos-Seguros (general Friends'
 insurance) Provident
 Kairos-Vida (life assurance) Friends'
 Provident
 Sweden/Denmark WASA Europeiska AB WASA
 (travel insurance and services)
 United Kingdom(A) Top-UK Group plc (general Topdanmark
 insurance)
 USA WASA North America Inc (medical WASA
 stop loss and liability insurance)
 (A) -- minority interests only.
 -0- 8/17/92
 /CONTACT: Jeff Medlock, managing director of Eureko, in Amsterdam: 31-20-660-7654/ CO: Eureko ST: IN: INS SU:


TS -- NY006 -- 0342 08/17/92 08:23 EDT
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Publication:PR Newswire
Date:Aug 17, 1992
Words:773
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