Intact Monetary Corp. and Tryg A/S have entered into an settlement to promote Codan Forsikring A/S’s Danish enterprise to Alm. Model A/S Group for about 12.6 billion Danish krone (roughly $2.52 billion) in money.
The settlement has been made with Codan’s mum or dad, Scandi JV Co 2 A/S, which is a collectively owned subsidiary of Intact and Tryg.
Intact and Tryg every will obtain 50% of the sale proceeds, or about 6.3 billion Danish krone (roughly $1.26 billion).
(Correction: the unique headline for this text incorrectly cited a sale value of $1.3 billion, which was the quantity that Intact and Trytg will every obtain. The full sale value is $2.52 billion).
The acquisition is at present anticipated to finish in the course of the first half of 2022 following the switch by Intact and Tryg of the Danish enterprise of Codan Forsikring right into a Danish authorized entity integrated for this goal – Codan DK.
Additional, a demerger of Codan Forsikring will make Tryg the only authorized proprietor of Trygg-Hansa in Sweden and Codan’s actions in Norway.
Intact stated it intends to make use of its proceeds from the sale to repay short-term debt raised by it to amass RSA Insurance coverage and for normal company functions. Certainly, the cope with Alm. Model was a direct results of the Intact-Tryg acquisition of RSA.
“Alm. Model and Codan are an ideal match. We’ll create Denmark’s second-largest non-life insurance coverage firm and mix the most effective of each firms underneath one roof,” commented Rasmus Werner Nielsen, CEO of Copenhagen-based Alm. Model, a property/casualty and life insurer, with a give attention to the Danish market.
“The acquisition brings collectively two well-reputed insurance coverage firms in a transaction that may create a single main and powerful Danish insurance coverage group with greater than 700,000 prospects and a transparent ambition of offering best-in-class options for our prospects,” Nielsen added.
Established in 1792, Alm. Model is the third-largest non-life insurance coverage firm in Denmark with a market share of roughly 9%. Non-life insurance coverage assists round 320,000 households and 90,000 company prospects, whereas life insurance coverage assists round 70,000 prospects. The corporate has roughly 1,400 staff.
Supply: Intact Monetary, Tryg and Alm. Model
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