HDI Global Specialty SE has strengthened its position in Sweden by acquiring alternative specialty lines Managing General Agent, Svedea AB.
Svedea is one of the three largest insurers of yachts, motorcycles and snowmobiles in the Swedish market, with 250,000 clients generating annual premiums of around €100m. HDI Global Specialty SE has purchased the majority (76.50%) of the shares in Svedea AB with an option to buy the remaining shares at the end of 2021.
The move is seen as a strategic acquisition and will ensure the delivery of a positive profit contribution and has favourable implications for earnings as the company expands. The parties have not disclosed the purchase price.
Speaking about the deal, CEO of HDI Global Specialty SE Ralph Beutter said: “Svedea is a strong brand in its own right in Sweden and an excellent distribution platform for HDI Global Specialty SE. Having a fully integrated MGA enables us to build on their market position, excellent client base and broad product offering.”
Pär Pettersson, founder and CEO of Svedea added: “To establish a new niche insurance business in Sweden, as a part of the Hannover Re group, has been a privilege. I am confident that we, together with HDI Global Specialty SE, will continue to innovate and be a strong challenger in the Swedish specialty market.”
Source: Company Press Release