TORONTO, May 2, 2022 /CNW/ - Intact Financial Corporation (TSX: IFC) ("Intact" or the "Company") announced today that, together with Tryg A/S (CPH: TRYG) ("Tryg"), it has completed the sale of Codan Forsikring A/S's Danish business ("Codan DK") to Alm. Brand A/S Group ("Alm. Brand") (CPH: ALMB), having received all required approvals.
Codan DK was acquired by Alm. Brand for a total consideration of DKK 12.6 billion ($2.3 billion), subject to post-closing adjustments. Intact is receiving 50% of the proceeds, commensurate with its stake in Codan DK. The Company 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 Corporation.
Intact Financial Corporation (TSX: IFC) 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 U.K. and Ireland. Our business has grown organically and through acquisitions to over $20 billion of total annual premiums.
In Canada, Intact distributes insurance under the Intact Insurance brand through a wide network of brokers, including its wholly-owned subsidiary BrokerLink, and directly to consumers through belairdirect. Intact also provides affinity insurance solutions through the Johnson Affinity Groups.
In the U.S., Intact Insurance Specialty Solutions provides a range of specialty insurance products and services through independent agencies, regional and national brokers, and wholesalers and managing general agencies.
Outside of North America, the Company provides personal, commercial and specialty insurance solutions across the U.K., Ireland, Europe and the Middle East through the RSA brands.
Tryg is the largest non-life insurance company in Scandinavia with activities in Denmark, Norway and Sweden. Tryg had total premiums of DKK 24.1 billion at year end 2021 and is active in the Private, Commercial and Corporate segment across the Nordic region. Tryg provides peace of mind and value for more than 4 million customers on a daily basis. Tryg A/S is listed on NASDAQ Copenhagen and approximately 45% of the shares are held by TryghedsGruppen smba. TryghedsGruppen, annually, contributes around DKK 650m to peace of mind purposes via TrygFonden.
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.
Certain of the statements included in this press release about the sale of Codan DK to Alm. Brand (the "Sale"), including the anticipated use of proceeds, timing and amount of post-closing adjustments, impact and benefits thereof or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely", "potential" or the negative or other variations of these words or other similar or comparable words or phrases, are intended to identify forward-looking statements. Unless otherwise indicated, all forward-looking statements in this press release are made as of May 2, 2022 and are subject to change after that date.
Forward-looking statements are based on estimates and assumptions made by management based on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances. In addition to other estimates and assumptions which may be identified herein, estimates and assumptions have been made regarding, among other things, the realization of the expected strategic, financial and other benefits of the Sale, and economic and political environments and industry conditions. There can be no assurance that the strategic and financial benefits expected to result from the Sale will be realized.
Many factors could cause the Company's actual results, financial performance or condition, or achievements to differ materially from those expressed or implied by the forward-looking statements herein, including, without limitation, management's estimates and expectations in relation to future economic and business conditions and other factors in relation to the Sale and resulting impact on growth and accretion in various financial metrics.
All of the forward-looking statements included in this press release are qualified by these cautionary statements and those made in the section entitled Risk Management (Sections 30-35) of our MD&A for the year ended December 31, 2021 ("Annual MD&A"), and elsewhere in this press release. These factors are not intended to represent a complete list of the factors that could affect the Company. These factors should, however, be considered carefully. Although the forward-looking statements are based upon what management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. Investors should not rely on forward-looking statements to make decisions, and investors should ensure the preceding information is carefully considered when reviewing forward-looking statements contained herein. The Company and management have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Intact Financial Corporation
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