ERGO transfers management of pension funds in ESTONIA to Nordea

30 May 2014 —
The leading insurance company in the Baltics, ERGO and the largest Nordic financial group Nordea have agreed that the new fund manager of pension funds of ERGO Funds AS in Estonia will be Nordea Pensions Estonia AS. The transfer has been approved by the Estonian Financial Supervision Authority.

The transaction will enter into force on September 1st, 2014, as of that date Nordea will take care of the pension assets of ERGO`s customers. The transfer of pension funds to Nordea concerns about 28 000 ERGO`s customers. As a result of the transaction, the number of Nordea pension fund customers in Estonia will double and the assets under management  will increase by 60%, bringing the II pillar market share of Nordea  to 8%.

The transaction between ERGO and Nordea is in accordance with the long-term business plans of both companies. "We have been successful in the management of pension assets and our clients have reason to be satisfied with the results of Nordea funds," said the CEO of Nordea Pensions Estonia, Angelika Tagel. "We assure that the interests  of all customers are protected throughout the entire process," she added.

"This is a very important strategic development for Nordea bank. Saving and investment services are of key importance to the bank and to many of our customers. As the best bank in Estonia, we are confident that we have a lot to offer in this area," added the CEO of Nordea bank in Estonia, Andreas Laane.  

"ERGO pension funds have been successful throughout the years. As our main business is insurance, we have decided to focus on property and life insurance services, ," said Member of the Board  of ERGO Funds, Alo Alunurm.

In 2013 Nordea and ERGO started to cooperate in offering life insurance to Nordea customers in Estonia. "Therefore, we know that we are handing the fund management over to a good partner.  We are both large international companies, who value professionalism, customer focused approach and excellent customer services," pointed out Alo Alunurm.

The transfer applies only to ERGO pension funds of the II and III pillars and comes into effect without any further actions required from customers. ERGO continues offering services of pensions` disbursement (pension annuity), pension insurance and other life insurance products.

All customers to whom the transition applies will receive detailed information. Additional information is available at ERGO and Nordea offices, Customer Support telephone numbers and the webpages.

The change of the fund management company will take place on September 1st, 2014. Nordea will merge ERGO funds with Nordea pension funds of a similar strategy on October 1st, 2014.  

ERGO is one of the leading insurance groups in the Baltic States providing all insurance products ranging from life, pension and medical insurance to non-life insurance. ERGO companies operating in the Baltic states belong to the international ERGO Group, which is one of the largest insurance companies in Europe. ERGO is represented in over 30 countries globally, primarily in Europe and Asia.  

The leading global banking and finance magazine, The Banker, recognised Nordea as the best bank in Estonia in 2013. Nordea bank belongs to the largest financial group in Nordic countries, Nordea Bank AB (publ). Nordea Pensions Estonia AS manages pension funds in Estonia since 2008 and belongs to the leading Nordic life and pension insurance group Nordea Life and Pensions.

Nordea has shown stabile growth in Estonia and is strengthening the bank`s position as an advising home bank. In the first quarter of 2014, Nordea Estonia increased the number of customers by 8.1% compared to the same period last year and the volume of saving and investment products by 21%.

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ERGO transfers management of pension funds in ESTONIA to Nordea