English

INSR - Private Placement successfully completed

Report this content

Oslo, October 10th, 2019


Reference is made to the stock exchange release dated October 10th, 2019, where Insr Insurance Group ASA announced its intention to issue up to 13 468 750 new shares in a private placement, corresponding to around 10% of the outstanding share capital.

The company is pleased to announce that it successfully raised NOK 103.7 million in gross proceeds in the private placement through the conditional allocation of all 13 468 750 shares at a subscription price of NOK 7.70 per share. This represents a 4.7% discount to today’s closing price of NOK 8.08.

The net proceeds from the private placement will be used to strengthen the competitive position and speed up Insr’s profitable growth trajectory through a reduced reinsurance quota, as well as improve utilization of the available Tier 1 hybrid capital. Additionally, the increased capital will accelerate IT investments central to the company’s strategy, increase flexibility for other growth-inducing investments, and improve the general robustness of Insr and its relation to stakeholders.

The internal solvency target has been increased to staying above 150%, from the previous target of above 130%. The additional capital would strengthen the Q2 2019 solvency ratio on a pro forma basis to 174% from 132%.

Espen Husstad, CEO of Insr Insurance Group, comments: "We are very pleased with the strong support from our investors, as well as with new investors believing in Insr. The positive net result momentum has continued since Q2, where Insr delivered its first profitable quarter. For July and August, Insr recorded a profit of NOK 10 million. I look forward to the growth we will create with a stronger balance sheet.”

Conditional notification of allotment and payment instructions will be sent to applicants on or about October 11th, 2019. 

Completion of the Private Placement is subject to the following conditions:

  • Approval of the share capital increase by the Norwegian Financial Supervisory Authority (NFSA)
  • Registration of the share capital increase with the Norwegian Register of Business Enterprises and the Norwegian Central Securities Depository ("VPS").

The closing conditions are expected to be fulfilled on or about October 22nd, 2019 with settlement October 24th, 2019, but the dates could be earlier or later.

The Board has considered alternative structures for raising new equity. Following careful consideration, the Board is of the view that it will be in the common interest of Insr and its shareholders to raise equity through a private placement, setting aside the pre-emptive rights of the shareholders. By structuring the transaction as a private placement, Insr will be in a position to raise capital in an efficient manner, with a lower discount to the current trading price, and with significantly lower risks, compared to a rights issue. 

The following primary insiders have been conditionally allocated shares in the Private Placement:

  • Chairman Åge Korsvold, including the company Gyljandi AS which he controls, has been allocated 77 922 shares and will, subject to completion of the Private Placement, hold 978 373 shares in the Company.
  • Board member Øystein Engebretsen with related parties have been allocated 750 000 shares and will, subject to completion of the Private Placement, hold 4 468 500 shares in the Company.
  • CEO Espen Husstad has been allocated 97 402 shares and will, subject to completion of the Private Placement, hold 626 399 shares and 2 150 000 options in the Company.
  • CFO Hans Petter Madsen has been allocated 38 961 shares and will, subject to completion of the Private Placement, hold 46 261 shares and 100 000 options in the Company.
  • Chief Commercial Officer Cathrine Christiansen with related parties has been allocated 25 974 shares and will, subject to completion of the Private Placement, hold 66 291 shares and 350 000 options in the Company.

Öresund Investment AB, employer of Board Member Engebretsen and therefore required to communicate share transactions, has been conditionally allocated 3 352 371 shares and will continue holding 24.89% of the shares in the Company.

ABG Sundal Collier ASA has acted as sole manager and bookrunner in connection with the Private Placement.

 

For further information, please contact:
Anne B. Knudtzon, SVP Business Controlling & Investor Relations
T: +47 926 10 606
E: anne.b.knudtzon@insr.io


Partnership insurance made easy. Insr enables you to broaden your customer or member offering through white label and co-branding insurance solutions. We provide insurance risk capital and insurance expertise, whilst you maintain your customer or member relationship. Insr is regulated by the Norwegian FSA (Finanstilsynet) and has a license for all groups of non-life insurance, except for credit and guarantee insurance.

Insr Insurance Group ASA was established in 2009 and is an independent insurance group listed on the Oslo Stock Exchange, with headquarters in Oslo. The Company’s main focus is on the market for property and casualty insurance for the retail and small enterprise segments in Norway. Insr distributes its products mainly through partners and insurance agents.