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SVENSKA HANDELSBANKEN GROUP ACQUIRES LIFE INSURANCE COMPANY RKA

 SVENSKA HANDELSBANKEN GROUP ACQUIRES LIFE INSURANCE COMPANY RKA
 STOCKHOLM, Sweden, Jan. 28 /PRNewswire/ -- The boards of Svenska Handelsbanken and the Swedish life insurance company RKA have decided to propose to an extraordinary annual meeting in RKA that Svenska Handelsbanken acquire the insurance company. The board of RKA considers this to be in the long-term interest of the policy-holders.
 RKA is the second oldest life insurance company in Sweden. It was founded in 1850 and is the fifth largest in Sweden, with a market share of 8 percent. RKA has assets of Swedish krona 7 billion, and just under 200 employees.
 Two years ago, Svenska Handelsbanken and RKA started a far-reaching cooperation. Today, there are RKA representatives at all the seven Swedish regional banks of Svenska Handelsbanken. RKA insurance policies can be bought at any of the 500 branches of the bank. During 1991 about 40 percent of total RKA policy volume was sold through Svenska Handelsbanken branches. Furthermore RKA and Svenska Handelsbanken jointly own the Unit Linked Insurance company Svenska Fondforsakringsaktiebolaget.
 Both parties have for some time wished to further deepen the cooperation. It is the opinion of the boards that this will best be done through an acquisition of RKA by the bank. Such an acquisition became legally possible in the autumn of 1991. The parties have naturally wished to take advantage of the new legislation as quickly as possible.
 RKA is a mutual insurance company. The acquisition is therefore technically structured so that the business of RKA is sold to a newly formed limited company owned by RKA. This limited company is then bought by Svenska Handelsbanken. The share capital of that company will be SEK 150 million. Svenska Handelsbanken will also further strengthen the capital base of the newly formed company with SEK 150 million. The long-term property holdings of RKA will be written down with about 20 percent for 1991.
 Svenska Handelsbanken's total capital contribution will thus be SEK 300 million. Furthermore, the bank has agreed to further strengthen the capital base of the company, if that will be needed due to the higher EC capital adequacy rules, which are expected to be in effect in Sweden from January 1993.
 In connection with the acquisition, the name of RKA will be changed to Handelsbanken Liv Forsakrings AB. The president of Svenska Handelsbanken Group, Arne Martensson, will be proposed as new chairman. RKA President Magnus Ohlsson continues as president.
 The acquisition requires government approval. The Swedish Finance Inspection Board has been informed and is in favor of the deal.
 -0- 1/28/92
 /CONTACT: Arne Martensson, president and head of the Svenska Handelsbanken Group, (Stockholm) 46-8-22-92-20, or Magnus Ohlsson, president of RKA, (Stockholm) 46-8-613-20-20/ CO: Svenska Handelsbanken Group; RKA ST: IN: FIN SU: TNM


JT -- NY053 -- 4222 01/28/92 11:56 EST
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Publication:PR Newswire
Date:Jan 28, 1992
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