TORONTO, May 2, 2022
/CNW/ - Intact Financial Corporation (TSX: IFC) ("Intact" or the
"Company") announced today that, together with Tryg A/S (CPH: TRYG)
("Tryg"), it has completed the sale of Codan Forsikring A/S's
Danish business ("Codan DK") to Alm. Brand A/S Group ("Alm. Brand")
(CPH: ALMB), having received all required approvals.
Codan DK was acquired by Alm. Brand for a total consideration of
DKK 12.6 billion ($2.3 billion), subject to post-closing
adjustments. Intact is receiving 50% of the proceeds, commensurate
with its stake in Codan DK. The Company will use its proceeds to
reduce debt, bringing the adjusted debt-to-total capital ratio to
approximately 20%. The remaining proceeds will be used for general
corporate purposes.
"We are pleased with the sale of Codan DK to Alm. Brand, which
represents an important milestone for Intact in de-risking the RSA
acquisition. The integration of RSA is on track and we remain
focused on driving outperformance across all of our markets," said
Charles Brindamour, Chief Executive
Officer, Intact Financial Corporation.
About Intact Financial
Corporation
Intact Financial Corporation (TSX: IFC) is the largest provider
of property and casualty (P&C) insurance in Canada, a leading provider of global specialty
insurance, and, with RSA, a leader in the U.K. and Ireland. Our business has grown organically
and through acquisitions to over $20
billion of total annual premiums.
In Canada, Intact distributes
insurance under the Intact Insurance brand through a wide network
of brokers, including its wholly-owned subsidiary BrokerLink, and
directly to consumers through belairdirect. Intact also provides
affinity insurance solutions through the Johnson Affinity
Groups.
In the U.S., Intact Insurance Specialty Solutions provides a
range of specialty insurance products and services through
independent agencies, regional and national brokers, and
wholesalers and managing general agencies.
Outside of North America, the
Company provides personal, commercial and specialty insurance
solutions across the U.K., Ireland, Europe and the Middle East through the RSA brands.
About Tryg A/S
Tryg is the largest non-life insurance company in Scandinavia
with activities in Denmark,
Norway and Sweden. Tryg had total premiums of
DKK 24.1 billion at year end 2021 and
is active in the Private, Commercial and Corporate segment across
the Nordic region. Tryg provides peace of mind and value for more
than 4 million customers on a daily basis. Tryg A/S is listed on
NASDAQ Copenhagen and approximately 45% of the shares are held by
TryghedsGruppen smba. TryghedsGruppen, annually, contributes around
DKK 650m to peace of mind purposes
via TrygFonden.
About Alm. Brand A/S
Group
Alm. Brand is headquartered in Copenhagen and has approximately 1,400
employees. The company was established in 1792 and is the
third-largest non-life insurance company in Denmark with a market share of approximately
9% prior to the acquisition of Codan DK. Non-life insurance assists
around 320,000 households and 90,000 corporate customers. Following
the acquisition Alm. Brand will have approximately 2,400 employees
and a market share of approximately 18%, thus making it a number
two in the Danish non-life market.
Forward-looking
statements
Certain of the statements included in this press release about
the sale of Codan DK to Alm. Brand (the "Sale"), including the
anticipated use of proceeds, timing and amount of post-closing
adjustments, impact and benefits thereof or any other future events
or developments constitute forward-looking statements. The words
"may", "will", "would", "should", "could", "expects", "plans",
"intends", "trends", "indications", "anticipates", "believes",
"estimates", "predicts", "likely", "potential" or the negative or
other variations of these words or other similar or comparable
words or phrases, are intended to identify forward-looking
statements. Unless otherwise indicated, all forward-looking
statements in this press release are made as of May 2, 2022 and are subject to change after that
date.
Forward-looking statements are based on estimates and
assumptions made by management based on management's experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors that management
believes are appropriate in the circumstances. In addition to other
estimates and assumptions which may be identified herein, estimates
and assumptions have been made regarding, among other things, the
realization of the expected strategic, financial and other benefits
of the Sale, and economic and political environments and industry
conditions. There can be no assurance that the strategic and
financial benefits expected to result from the Sale will be
realized.
Many factors could cause the Company's actual results, financial
performance or condition, or achievements to differ materially from
those expressed or implied by the forward-looking statements
herein, including, without limitation, management's estimates and
expectations in relation to future economic and business conditions
and other factors in relation to the Sale and resulting impact on
growth and accretion in various financial metrics.
All of the forward-looking statements included in this press
release are qualified by these cautionary statements and those made
in the section entitled Risk Management (Sections 30-35) of our
MD&A for the year ended December 31,
2021 ("Annual MD&A"), and elsewhere in this press
release. These factors are not intended to represent a complete
list of the factors that could affect the Company. These factors
should, however, be considered carefully. Although the
forward-looking statements are based upon what management believes
to be reasonable assumptions, the Company cannot assure investors
that actual results will be consistent with these forward-looking
statements. Investors should not rely on forward-looking statements
to make decisions, and investors should ensure the preceding
information is carefully considered when reviewing forward-looking
statements contained herein. The Company and management have no
intention and undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
SOURCE Intact Financial Corporation