AM Best Comments on Credit Ratings of Intact Financial Corporation Following Transaction Announcement
AM Best has commented that the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings of aa- (Superior) of Intact Insurance Company (Ontario, Canada) and the subsidiaries of Intact Financial Corporation (Intact) remain unchanged following the recent announcement of the definitive agreement along with its partner Tryg A/S to sell Codan Forsikring A/Ss Danish business to Alm.
AM Best has commented that the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings of “aa-” (Superior) of Intact Insurance Company (Ontario, Canada) and the subsidiaries of Intact Financial Corporation (Intact) remain unchanged following the recent announcement of the definitive agreement along with its partner Tryg A/S to sell Codan Forsikring A/S’s Danish business to Alm. Brand A/S Group. The purchase price is approximately CAD 2.52 billion, and this transaction is expected to close in the first half of 2022, subject to approvals or clearances of all necessary regulatory authorities. This follows the closing of the acquisition of RSA Insurance Group Limited (RSA) by Intact and Tryg A/S, which closed on June 1, 2021.
Intact will receive 50% of the proceeds of this transaction, pursuant to its agreement with Tryg A/S. Intact intends to use its proceeds to repay short term debt raised during the acquisition of RSA, and for general corporate purposes.
AM Best notes that the announced sale of the Danish operations is consistent with Intact’s long-term strategic plans and AM Best’s analysis of the original Intact acquisition with Tryg A/S of the RSA business.
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