As part of a large-scale reorganization, Danish insurance conglomerate Alm. Brand Group has sold its Codan Energy & Marine division to Gard, the world's largest marine insurer. The price came to $160 million in cash, plus another $70 million in freed-up equity for Alm. Brand. For Gard, the purchase represents a significant bet on the future of the maritime industry's energy segment: Codan pioneered the insurance market for offshore wind, has more than 7,000 active policies in the field, and has worked on several record-setting projects.
"After thoroughly exploring the strategic opportunities for our Energy & Marine business, we have concluded that a divestment will generate the greatest possible value for Alm. Brand Group," said Alm. CEO Rasmus Werner Nielsen in a statement.
The total sale price will be disbursed to Alm. Group's shareholders once the transaction is approved by regulators and completed. The conglomerate's share price rose by 13 percent in early trading after the announcement. (Alm. Brand retains the rest of its Codan division, which provides insurance for consumers and small and medium-sized enterprises.)
For Gard, the new acquisition represents an additional $180 million in annual gross premium income - a boost of 15 percent - plus 50 new employees and a new office in Denmark.
"This move not only reinforces our position within the marine and energy segments, but also increases our presence in the Danish market," said Gard CEO Rolf Thore Roppestad. "Our Marine Hull and P&I portfolios have seen considerable growth over the last years, and with this, our Energy book also gets a significant boost. We are bringing energy back as a true diversifier, giving us an even stronger footing than before."
Top image: Alm. Brand headquarters, Copenhagen (Politikaner/ CC BY SA 3.0)
