Life companies operating cross border are facing more restructuring and potential consolidation, the chief executive of SEB Life International has warned.
Peder Nateus spoke to International Adviser shortly after SEB Life announced it was to cease accepting new business in selected market.
He explained that increasing regulatory challenges and the allocation of resources were factors in the company reassessing its strategy.
Mifid II, Priips and IDD are just some of the recent regulatory changes companies across Europe have had to deal with.
“Operating on such a broad scale in Europe requires a lot of resources. We will now focus those resources on the Nordics, SEB’s home markets,” Nateus said.
European restructuring
He continued: “It has become more challenging for smaller companies with broad business models to competitively operate. Although we welcome the new regulations, this is the flip side of an increasing regulatory environment.”
Nateus predicts that “you will see larger players become more focused on their home markets and the consolidation of the smaller companies”.
Recent examples of this have been the sale of GeneraliPan Europe and Generali Worldwide to the consolidator parent of Isle of Man-based Utmost Wealth Solutions.
Surprise and disappointment
As of 30 September, SEB Life no longer accepts new business from intermediaries in the UK, Spain, France, Italy, Cyprus and Malta.
The firm will now focus on new business development in the Nordic markets, primarily its home markets of Sweden and Finland.
Nateus reiterated that SEB Life will continue to serve all existing clients as normal and honour the contracts that they have.
As expected, there was some surprise and disappointment that the company has decided to close to new business in its non-Nordic markets, Nateus said.
“The landscape is constantly changing and companies need to focus on their primary markets.”
The change in strategy, however, does not mean that SEB Life is content to remain focused on just two countries.
Natues added that SEB Life may also look into new opportunities in Nordic markets where its parent company, SEB Group, operates.
