Intact Financial Corp. and Tryg A/S have completed the sale of Codan Forsikring A/S’ Danish business to Alm. Brand A/S, after receiving all required approvals.
On June 11 2021, it was announced that Codan DK would be acquired by Alm. Brand for a total cash consideration of 12.6 billion Danish kroner (approximately US$1.79 billion). Codan became a jointly owned subsidiary of Intact and Tryg, following the 2021 acquisition of RSA Insurance Group plc.
Intact and Tryg each will receive 50% of the sale proceeds, or about 6.3 billion Danish kroner (approximately US$893 million).
The sale is the final step in the acquisition of RSA by Canada’s Intact Financial and Denmark’s Tryg.
Intact said it will use its proceeds to reduce debt, bringing the adjusted debt-to-total capital ratio to approximately 20%. The remaining proceeds will be used for general corporate purposes.
“We are pleased with the sale of Codan DK to Alm. Brand, which represents an important milestone for Intact in de-risking the RSA acquisition. The integration of RSA is on track and we remain focused on driving outperformance across all of our markets,” said Charles Brindamour, chief executive officer, Intact Financial Corp.
Tryg said it will use the proceeds to carry out a share buyback program of 5 billion Danish kroner (US$709 million), which will start on May 3, 2022.
“We are pleased with the sale of Codan Denmark to Alm. Brand, which marks an important milestone for Tryg. Not only is this the final step in a well-run process to acquire RSA’s Norwegian and Swedish business, but also the beginning of a DKK 5 billion share buyback program,” commented Morten Hübbe, group CEO at Tryg. “With this milestone behind us our focus will be to successfully integrate Trygg-Hansa and Codan Norway into the business, and the realization of the promised synergies.”
About Tryg A/S, Intact Financial Corp. and About Alm. Brand A/S Group
Tryg is the largest non-life insurance company in Scandinavia with activities in Denmark, Norway and Sweden. Tryg had total premiums of 24.1 billion Danish kroner ($3.4 billion), at year end 2021 and is active in the private, commercial and corporate segment across the Nordic region. Tryg A/S is listed on NASDAQ Copenhagen and approximately 45% of the shares are held by TryghedsGruppen smba.
Intact Financial Corp. is the largest provider of property and casualty (P/C) insurance in Canada, a leading provider of global specialty insurance, and, with RSA, a leader in the UK and Ireland.
Alm. Brand is headquartered in Copenhagen and has approximately 1,400 employees. The company was established in 1792 and is the third-largest non-life insurance company in Denmark with a market share of approximately 9% prior to the acquisition of Codan DK. Non-life insurance assists around 320,000 households and 90,000 corporate customers. Following the acquisition, Alm. Brand will have approximately 2,400 employees and a market share of approximately 18%, thus making it a number two in the Danish non-life market.
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