Best’s News & Research Service - June 11, 2021 04:45 PM (EDT)
AM Best Comments on Credit Ratings of Intact Financial Corporation Following Transaction Announcement
- June 11, 2021 04:45 PM (EDT)
Oldwick //BestWire// - 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.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.