National General to divest Euro Accident Health and Care Insurance
National General Holdings announced that it has entered into an agreement to sell its Euro Accident Health and Care Insurance Sweden operation to an investor group arranged by Impilo AB, a Swedish investment company focused on Nordic healthcare investments. Euro Accident Sweden provides health insurance, predominantly personal medical insurance or PMI which is an enhanced medical policy that supplements a national health care plan provided to large group and individuals. The estimated sale price for this transaction is $138M, which would result in an estimated pre-tax gain on sale of $3M, which is net of a negative realized FX translation impact of $22M. Since this transaction is based in Swedish Krona and will reflect certain closing adjustments, the final price and gain on sale will vary accordingly. The transaction is expected to close in late 2019 or early 2020, subject to customary closing conditions and regulatory approvals. Euro Accident Sweden net earned premium was $50M for the first six months of 2019 and $111M for full year 2018. Euro Accident Sweden's contribution to National General's pre-tax earnings was a loss of $3M for the first six months of 2019 and a pre-tax gain of $3M for full year 2018.