Intact Financial Corp. and Tryg A/S have entered into an agreement to sell Codan Forsikring A/S’s Danish business to Alm. Brand A/S Group for about 12.6 billion Danish kroner (approximately $2.52 billion) in cash.
The agreement has been made with Codan’s parent, Scandi JV Co 2 A/S, which is a jointly owned subsidiary of Intact and Tryg.
Intact and Tryg each will receive 50% of the sale proceeds, or about 6.3 billion Danish kroner (approximately $1.26 billion).
(Correction: the original headline for this article incorrectly cited a sale price of $1.3 billion, which is the amount that Intact and Trytg will each receive. The total sale price is $2.52 billion).
The acquisition is currently expected to complete during the first half of 2022 following the transfer by Intact and Tryg of the Danish business of Codan Forsikring into a Danish legal entity incorporated for this purpose – Codan DK.
Further, a demerger of Codan Forsikring will make Tryg the sole legal owner of Trygg-Hansa in Sweden and Codan’s activities in Norway.
Intact said it intends to use its proceeds from the sale to repay short-term debt raised by it to acquire RSA Insurance and for general corporate purposes. Indeed, the deal with Alm. Brand was a direct result of the Intact-Tryg acquisition of RSA.
“Alm. Brand and Codan are a perfect match. We will create Denmark’s second-largest non-life insurance company and combine the best of both companies under one roof,” commented Rasmus Werner Nielsen, CEO of Copenhagen-based Alm. Brand, a property/casualty and life insurer, with a focus on the Danish market.
“The acquisition brings together two well-reputed insurance companies in a transaction that will create a single major and strong Danish insurance group with more than 700,000 customers and a clear ambition of providing best-in-class solutions for our customers,” Nielsen added.
Established in 1792, Alm. Brand is the third-largest non-life insurance company in Denmark with a market share of approximately 9%. Non-life insurance assists around 320,000 households and 90,000 corporate customers, while life insurance assists around 70,000 customers. The company has approximately 1,400 employees.
Source: Intact Financial, Tryg and Alm. Brand
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