National General Holdings Corp. Announces Agreement to Divest Euro Accident Health and Care Insurance in Sweden
September 03 2019 - 8:30AM
National General Holdings Corp. (NASDAQ:NGHC) announced today that
it has entered into an agreement to sell its Euro Accident Health
and Care Insurance Sweden operation (Euro Accident Sweden), to an
investor group arranged by Impilo AB, a Swedish investment company
focused on Nordic healthcare investments
.
Euro Accident Sweden provides health insurance, predominantly
personal medical insurance or PMI which is an enhanced medical
policy that supplements a national health care plan provided to
large group and individuals.
The estimated sale price for this transaction is $138 million,
which would result in an estimated pre-tax gain on sale of $3
million, which is net of a negative realized FX translation impact
of $22 million. Since this transaction is based in Swedish
Krona (SEK) and will reflect certain closing adjustments, the final
price and gain on sale will vary accordingly. The transaction
is expected to close in late 2019 or early 2020, subject to
customary closing conditions and regulatory approvals.
National General Chief Executive Officer Barry Karfunkel stated:
“The sale of Euro Accident Sweden will allow us to continue to
focus on our growing domestic A&H business. 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. 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 net earned premium was $50 million for the
first six months of 2019 and $111 million for full year 2018.
Euro Accident Sweden’s 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.
About National General Holdings Corp.National
General Holdings Corp., headquartered in New York City, is a
specialty personal lines insurance holding company. National
General traces its roots to 1939, has a financial strength rating
of A- (excellent) from A.M. Best, and provides personal and
commercial automobile, homeowners, umbrella, recreational vehicle,
motorcycle, supplemental health, and other niche insurance
products.
Forward Looking Statements
This news release contains “forward-looking statements” that are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements are based on the Company’s current expectations and
beliefs concerning future developments and their potential effects
on the Company. Forward-looking statements can generally be
identified by the use of forward-looking terminology, such as
“may,” “will,” “plan,” “expect,” “project,” “intend,” “estimate,”
“anticipate” and “believe” or their variations or similar
terminology. There can be no assurance that actual developments
will be those anticipated by the Company. Actual results may differ
materially from those expressed or implied in these statements as a
result of significant risks and uncertainties, including, but not
limited to, non-receipt of expected payments from insureds or
reinsurers, changes in interest rates, a downgrade in the financial
strength ratings of our insurance subsidiaries, the effect of the
performance of financial markets on our investment portfolio, our
ability to accurately underwrite and price our products and to
maintain and establish accurate loss reserves, estimates of the
fair value of investments, development of claims and the effect on
loss reserves, large loss activity including hurricanes and
wildfires, the cost and availability of reinsurance coverage, the
effects of emerging claim and coverage issues, the effect of
unpredictable catastrophic losses, changes in the demand for our
products, our degree of success in integrating acquired businesses,
the effect of general economic conditions, state and federal
legislation, the effects of tax reform, regulations and regulatory
investigations into industry practices, risks associated with
conducting business outside the United States, developments
relating to existing agreements, disruptions to our business
relationships with third party or vendor agencies, breaches in data
security or other disruptions involving our technology, heightened
competition, changes in pricing environments, and changes in asset
valuations. The forward-looking statements contained in this news
release are made only as of the date of this release. The Company
undertakes no obligation to publicly update any forward-looking
statement except as may be required by law. Additional information
about these risks and uncertainties, as well as others that may
cause actual results to differ materially from those projected is
contained in the Company’s filings with the Securities and Exchange
Commission.
Investor ContactPaul Anderson Director of
Investor RelationsPhone: 212-380-9462Email:
Paul.Anderson@NGIC.COM
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