Euro Accident Sweden is being sold by the US insurance company to focus on its domestic accident and health (A&H) business
US-based National General has agreed to offload its Euro Accident Health and Care Insurance business in Sweden (Euro Accident Livförsäkring or Euro Accident Sweden), to an investor group arranged by Impilo, for $138m (£114m).
Impilo is a Sweden-based investment company, which focuses on making healthcare investments in the Nordic region.
On the other hand, Euro Accident Sweden specialises in health-related insurance and employee wellbeing. The company is primarily active within the long-term disability, private health insurance, and pension risk.
The National General subsidiary mainly provides personal medical insurance (PMI), which is said to be an improved medical policy that supplements a national health care plan offered to large group and individuals.
According to Impilo, more than half a million people in Sweden are insured through Euro Accident Sweden.
The net earned a premium of the Swedish insurance company for the first six months of 2019 was $50m (£41.3m) and $111m (£91.68m) for full-year 2018.
Impilo’s Fredrik Strömholm said: “There is a growing demand for healthcare-related insurance. We are impressed by how Euro Accident provides services to help clients get the right support at the right time, and how there is also a strong focus on preventive care, something that benefits society at large.
“The company has a very strong management team that has successfully grown the company by more than 20% p.a. over more than ten years to a leading health related insurance provider, and we look forward to working with them to continue to strengthen Euro Accident’s position and expand the business further.”
Subject to regulatory approvals and customary closing conditions, the transaction is expected to be completed in late 2019 or early 2020.
Why National General is selling Euro Accident Sweden
National General CEO Barry Karfunkel said: “The sale of Euro Accident Sweden will allow us to continue to focus on our growing domestic A&H business.
“This transaction will also allow us to simplify our operations, legal and financial structure, and allow us to continue to allocate resources to domestic initiatives and opportunities.”
Headquartered in New York City, National General is a speciality personal lines insurance holding company that offers niche insurance products like personal and commercial automobile, recreational vehicle, motorcycle, homeowners, umbrella, and supplemental health.