Gjensidige acquires Nykredit Forsikring
Gjensidige acquires Danish insurance company Nykredit Forsikring for a consideration of DKK 2.5 billion. As part of the agreement Gjensidige and Nykredit enters into a long term strategic partnership.
Through the acquisition, the Gjensidige Gruop will increase the market share in Danish non life insurance business from app. 3 to app. 6 percent. The acquired business has 230.000 customers and gross premium earnings slightly above DKK 1.4 billion. Net profit after tax was DKK 245 million in 2009. With Nykredit Forsikring, the Gjensidige Group’s number of employees will increase by 320 employees.
-We have a long standing ambition to increase our market share in Denmark through strategic acquisitions. Nykredit Forsikring has presented a tremendous opportunity for us, first and foremost due to the potential for distribution through the Nykredit Group, with it’s substantial position in the banking market. I consider our strategic partnership as a powerful engine for growth, says CEO Helge Leiro Baastad.
The deal marks Gjensidige’s seventh acquisition outside of Norway since 2006. The company now has a major presence in the Nordic and Baltic region. With Nykredit Forsikring on board, more than a fourth of Gjensidige’s premium earnings will originate from abroad.
-Gjensidige is among the most cost efficient players in the Nordic insurance market. Further growth will enhance our economies of scale. To achieve this, we will continue to seek growth opportunities outside of Norway, Baastad says.
In connection to the acquisition Gjensidige enters a long term strategic partnership with the Nykredit Group. Nykredit is among the major financial institutions in Denmark, with activities including banking, insurance, pensions and real estate agents. The Group has an extensive distribution network, including 70 branch offices and two real estate agents constituting 310 offices in total. As part of the partnership, Nykredit will distribute non life insurance on behalf of Gjensidige.
Information director Øystein Thoresen Tlf: 47 952 33 382