Skandia

In late 1988, a Proventus analysis showed that the Swedish insurance industry was facing major changes. Deregulation was about to trigger a consolidation in the financial sector that would enable strong players to increase their market share and improve their profitability. At the same time, a revaluation of the insurance sector was expected to indicate higher values not reflected in the then-current market price.

Proventus foresaw the development of a pan-Nordic financial group. Concurrently, Kansallis-Osake-Pankki, Pohjola, two large Finnish financial institutions, and Proventus built up substantial holding in Skandia, the largest Swedish insurance company. When the Finnish financial sector experienced problems, the pan-Nordic consolidation was put on hold. However, the consolidation process continued within the Swedish market and Proventus sold its Skandia stake to Investor, a Swedish investment company with interest in Skandinaviska Enskilda Banken.