Canadian property and casualty (P&C) insurer Intact Financial Corporation has announced plans to sell Codan Forsikring A/S’s Danish business (Codan DK) to Alm. Brand A/S Group.
Codan DK is owned by Scandi JV Co 2 A/S, which is in turn co-owned Intact and Tryg A/S following their recent acquisition of RSA Insurance Group plc.
Under the terms of the agreement, Alm. Brand will acquire Codan DK for a total cash consideration of approximately DKK 12.6 billion (USD 2.52 billion), with Intact to receive 50% of the proceeds.
Intact intends to use its DKK 6.3 billion (USD 1.26 billion) share of the sale to repay short-term debt raised by it to acquire RSA and for general corporate purposes.
The deal is currently anticipated to close during the first half of 2022, subject to regulatory approvals.
“We are pleased to announce the sale of Codan DK to Alm. Brand, a well-known and respected Danish financial services company. The combined business is very well positioned in the Danish non-life insurance market,” said Charles Brindamour, CEO of Intact Financial Corporation.
Alm. Brand is a Danish financial services group focused in Denmark and carries on non-life insurance and life insurance activities.
Non-life insurance is the group’s core business, exclusively targeting the Danish market, with a special focus on private customers, small and medium-sized enterprises, property owners and administrators, agricultural customers and the public sector.
Codan DK is one of the largest non-life insurers in Denmark, distributing a broad range of insurance products across multiple channels.
Barclays Bank PLC, acting through its Investment Bank, and Danske Bank A/S are acting as financial advisers, and Clifford Chance LLP is acting as English law legal adviser and Gorrissen Federspiel Advokatpartnerselskab is acting as Danish law legal adviser to Intact and Scandi JV Co 2 A/S.
