National General Holdings Corp. has received regulatory approval to go ahead with the sale of its Euro Accident Health and Care Insurance Sweden operation.
The company was given the go-ahead by the Swedish Financial Supervisory Authority to offload the business to an investor group arranged by Impilo AB, a Swedish investment company focused on Nordic healthcare investments.
First announced in September 2019, the transaction is scheduled to close on December 2, 2019.
Euro Accident Sweden is a provider health insurance, predominantly personal medical insurance or PMI, which is an enhanced medical policy that supplements a national heath care plan provided to large groups and individuals.
Impilo AB acquired the unit in a deal valued at $148 million, which will result in an increase to shareholders’ book value of approximately $24 million.
However, since this transaction is based in Swedish Krona (SEK), the final price will vary accordingly.
Euro Accident Sweden reported net earned premium was $50 million for the first six months of 2019 and $111 million for full year 2018.
The business’ contribution to National General’s pre-tax earnings was a loss of $3 million for the first six months of 2019 and a pre-tax gain of $3 million for full year 2018.