National General to sell Euro Accident Sweden
National General Holdings Corp. announced 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.
“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.” – National General Chief Executive Officer Barry Karfunkel.
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.