Tryg and Intact Financial Corporation (IFC) have closed the divestment of Codan Forsikring’s Danish business, Codan DK, to Alm. Brand, following receipt of all required approvals.
On 11 June 2021, the acquisition of Codan DK by Alm. Brand for a total cash consideration of $1.8bn (DKK12.6bn) was announced.
Based in Copenhagen, Alm. Brand, which has approximately 1,400 employees, is a non-life insurance company in Denmark.
With the acquisition, Alm. Brand will have around 2,400 employees and a market share of around 18%.
Tryg received 50% of the sale proceeds amounting to around $890m (DKK6.3bn).
With the proceeds, Tryg plans to undertake a share buyback programme of $710m (DKK5bn), which will commence on 3 May.
Tryg group CEO Morten Hübbe said: “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 5bn share buyback programme.
“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.”
Tryg is a non-life insurance company in Scandinavia, having activities in Denmark, Norway and Sweden.
At the end of 2021, the company had total premiums of $3.41bn (DKK24.1bn). It is active in the private, commercial and corporate segments across the Nordic region.
It has over four million customers on a daily basis.
Listed on NASDAQ Copenhagen, Tryg’s approximately 45% of the shares are held by TryghedsGruppen.
In the press statement, Tryg stated that TryghedsGruppen does not intend to take part in the share buyback programme to facilitate increased ownership of Tryg.
IFC is a provider of property and casualty insurance in Canada.
It also provides affinity insurance solutions through the Johnson Affinity Groups.
In the US, Intact Insurance Specialty Solutions offers a range of specialty insurance products and services.
It offers personal, commercial and specialty insurance solutions across the UK, Ireland, Europe and the Middle East through the RSA brands.