Announcement no. 29/2021
INSIDE INFORMATION
Alm. Brand has today entered into a conditional agreement with Nordic I&P to sell Alm. Brand Liv og Pension at a price ofDKK 1,100 million . The sale triggers an accounting gain of close toDKK 565 million before payment of transaction-related costs. Alm. Brand’s guidance for consolidated profit is subsequently upgraded toDKK 1,200-1,250 million before tax, against the previous guidance of aDKK 700-750 million profit.- With the acquisition of Alm. Brand Liv og Pension, Nordic I&P going forward will be able to also offer pension schemes to new customers. In connection with the transaction, Alm. Brand Forsikring has entered into a distribution agreement with Nordic I&P on the sale of pension schemes.
- The sale of Alm. Brand Liv og Pension will free up capital in
Alm. Brand in a total amount of aboutDKK 900 million . The freed-up capital is expected to be used to reduce the size of the forthcoming rights issue in connection with the acquisition of Codan.
Chairman of the Board of Directors Jørgen Hesselbjerg Mikkelsen:
“With the sale of Alm. Brand Liv og Pension, we will be able to focus specifically on non-life insurance going forward. The acquisition of Codan’s Danish business and the subsequent merger and integration of the two companies will position us strongly to create value for our customers and owners in the years ahead.”
CEO
“We have thoroughly investigated the strategic opportunities for the life insurance business. Not only is the sale a perfect match for our life insurance activities, it also underlines our efforts to further sharpen the Alm. Brand Group’s focus. The sale marks yet another step towards the new and enlarged
The sale of Alm. Brand Liv og Pension
The sale is a consequence of the decision to investigate strategic alternatives for Alm. Brand Liv og Pension described in company announcement no. 13/2021 of
Under the agreement, Nordic I&P will take over all shares of Alm. Brand Liv og Pension. The sale will be effected by cash payment of
Alm. Brand Forsikring and Nordic I&P have also entered into an agreement on the continued distribution of the life insurance company’s average rate product to customers of Alm. Brand Forsikring.
In continuation of the approval of the sale by the
Alm. Brand Liv og Pension is one of the market’s most well-run life insurance and pension companies with stable, high earnings and return on equity. Alm. Brand Liv og Pension had total pension assets of
The owners of Nordic I&P are also in the process of acquiring Norli Pension Livsforsikring A/S, a Danish pension company specialising in handling traditional, average-rate pension agreements. To date, Norli Pension Livsforsikring A/S has not sold new pension schemes. Based on Alm. Brand Liv og Pension’s market position and experience in selling average-rate pension products, the buyer will in future pursue a strategy which, in addition to consolidating portfolios, will also cover new sales of the traditional pension product. At
Release of capital
The sale of Alm. Brand Liv og Pension will free up capital in a total amount of about
After the sale of the pension company, the acquisition of Codan’s Danish business, the completion of the forthcoming rights issue and payment of dividends in respect of 2021, the Alm.
Outlook for 2021
The sale of Alm. Brand Liv og Pension A/S is expected to entail restructuring costs of about
Moreover,
Expected timeline for completion of the transaction
The transaction is subject to approval by the
Contact
Please direct any questions regarding this announcement to:
Investors and equity analysts:
Senior Investor Relations Officer
Mobile no. +45 5143 8002
Press:
Head of Media Relations
Mobile no. +45 2499 8455
Attachment
- AS 29 2021 - Alm. Brand Liv og Pension
UK
© OMX, source