Canadian insurer Intact and Nordic insurer Tryg are to sell the Danish business of carrier Codan to Alm. Brand. Intact and Tryg have just completed their acquisition of RSA for $10.2bn.
The deal, first announced in November last year, will see RSA broken up with Intact buying RSA’s Canadian, UK and international companies and Tryg picking up the firm’s Swedish and Norwegian businesses. Intact and Tryg jointly owned Codan, RSA’s Danish business.
Under the terms of the latest agreement, Alm. Brand will acquire Codan DK for a total cash consideration of DKK12.6bn ($2.52bn).
Intact will receive 50% of the proceeds from the sale and intends to use it proceeds to repay short-term debt it raised to acquire RSA and for general corporate purposes.
Alm. Brand 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 range of insurance products across multiple channels.
Tryg is one of the biggest insurance companies in the Nordic region, with activities in Denmark, Norway and Sweden. It is active in the private, commercial and corporate segments across the Nordic region.