National General Holdings Corp. has announced an agreement to sell its Euro Accident Health and Care Insurance Sweden operation to an investor group arranged by Impilo AB, a company focused on Nordic healthcare investments.
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.
The transaction is valued at $138 million, representing an estimated pre-tax gain on sale of $3 million, which is net of a negative realized FX translation impact of $22 million.
National General currently expects the deal to be completed in late 2019 or early 2020, subject to regulatory approval.
“The sale of Euro Accident Sweden will allow us to continue to focus on our growing domestic A&H business,” said Barry Karfunkel, Chief Executive Officer at National General.
“This transaction will also allow us to simplify our operations, legal and financial structure, and allow us to continue to allocate resources to domestic initiatives and opportunities,” he continued.
“I would like to thank the Euro Accident team for what they have accomplished over the past six years turning an agency into a full-fledged Swedish insurance company.”
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.