Service       
ECM

Industry     
Insurance

Deal value
DKK 37bn

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HCN Partners tryghedsgruppen logo uai

Advised TryghedsGruppen, the majority owner of Tryg, in Tryg’s acquisition of RSA Group’s Nordic insurance business

Advised TryghedsGruppen, the majority owner of Tryg, in Tryg’s acquisition of RSA Group’s Nordic insurance business

The offer for RSA was by way of public offer and completed in cooperation with the Canadian insurance company Intact that acquired RSA’s businesses outside the Nordic region

RSA Insurance is a multinational insurance company headquartered in London with global operations and local brands in the Nordics; Trygg-Hansa, Codan and Privatsikring

Tryg is one of the largest non-life insurance companies in Scandinavia with more than 4 million customers

Following the transaction, Tryg acquired RSA’s Swedish and Norwegian businesses (Trygg-Hansa and Codan Norway), while Intact and Tryg co-owned the Danish business on a 50/50 economic basis. The Danish business has since been sold to the Danish insurance company Alm. Brand

The transaction establishes Tryg as the largest Scandinavian non-life insurer and significantly strengthens its position in the Swedish and Norwegian markets. Tryg expects to be able to realise approximately DKK 900m of annual pre-tax synergies by 2024

To support the transaction TryghedsGruppen participated in a DKK 37bn rights issue by Tryg with available funds, however, decreasing its ownership in Tryg from 60% to c. 45%.

Our advisory services included the following:

  • Review of process and valuation concerning the activities taken over by Tryg, including review of work leading to synergy potential
  • Structuring Accelerated Book Builds of a total of DKK 12bn to prepare TryghedsGruppen’s participation in the DKK 37bn rights issue
  • Private placement of DKK 1bn Tier 2 loan with pension funds

HCN Partners acted as financial adviser to TryghedsGruppen throughout the entire process including participation in the rights issue by Tryg and the issue of the subordinated debt (issuance of new Tier 2 Capital Notes)

 

*Completed by the HCN Partners team when employed at Handelsbanken