Skandia posts sales ‘defence’
Skandia, the Swedish insurer at the centre of a £3.13bn takeover battle, attempted to bolster its defence yesterday by unveiling a 34 per cent leap in sales.
Total premiums and deposits rose in the third quarter to Skr32.4bn (£2.29bn) as all its divisions, including Britain, helped boost revenue.
Old Mutual, the British-listed company whose main business is in South Africa, has twice had it buy-out offers rebuffed by the board of the Swedish company.
Less than a fortnight ago, the battle escalated when Skandia set out 16 reasons why the hostile offer was unacceptable.
Commenting on the results yesterday, Hans-Erik Andersson, Skandia’s president and chief executive, said: “The strong growth reinforces our view that the standalone prospects for the Skandia business offer a highly compelling investment proposition for shareholders.”
Skandia, which is Sweden’s largest insurer, has managed to increase premiums and deposits in Britain, Asia Pacific and offshore by 24 per cent so far this year.
Old Mutual wants to take over Skandia to create Europe’s eighth biggest insurer, but Skandia says the move has “no industrial logic”.
In September the board rejected Old Mutual’s first approach. So far, 15 per cent of shareholders have said they do not support a takeover.