HDI Global Specialty SE, a joint venture of reinsurance giant Hannover Re and HDI Global SE, has acquired alternative specialty lines Managing General Agent (MGA) Svedea AB, boosting its presence in Sweden.
Svedea is one of the largest insurers of yachts, motorcycles and snowmobiles in the Swedish insurance market, with 250,000 clients that generate annual premiums of around €100 million (USD 112 million).
Under the transaction, HDI Global Specialty SE has acquired 76.5% of the shares in the Swedish MGA, with an option to purchase the remaining shares at the end of 2021.
The purchase price has not been disclosed and according to an announcement on the deal, this is a strategic acquisition that will ensure the delivery of a positive profit contribution and has favourable implications as the firm expands.
Chief Executive Officer (CEO) of HDI Global Specialty SE, Ralph Beutter said: “Svedea is a strong brand in its own right in Sweden and an excellent distribution platform for HDI Global Specialty SE. Having a fully integrated MGA enables us to build on their market position, excellent client base and broad product offering.”
CEO of Svedea, Pär Pettersson, added: “To establish a new niche insurance business in Sweden, as a part of the Hannover Re group, has been a privilege. I am confident that we, together with HDI Global Specialty SE, will continue to innovate and be a strong challenger in the Swedish specialty market.”