EQT acquires International Health Insurance danmark A/S
EQT acquires IHI from Sygeforsikringen danmark IHI operates in the ”high end” segment for private medical insurance internationally. EQT will contribute to the continued development of the company by providing capital as well as significant international experience and expertise.
Sygeforsikringen danmark (”danmark”) and EQT Scandinavia B.V. (“EQT”), the Investment Manager for EQT Scandinavia II (”EQT”), has today signed an agreement regarding the sale of International Health Insurance danmark A/S (”IHI”) to EQT. In the future IHIs parent company Sygeforsikringen ”danmark” will focus on its core health insurance business in Denmark. The acquisition is subject to the approval of
Sygeforsikringen ”danmark”s delegate meeting on November 22nd, and by the Danish Financial Supervisory Authority.
Profile of IHI
IHI operates in the specialised segment for private medical insurance, focusing on products for high net worth individuals and expats. The majority of IHI’s business is outside Denmark, particularly in Europe and Latin America. IHI’s products have the best possible coverage and include an extensive service package, allowing its customers to feel safe in the event of accident or illness. IHI was founded more than 20 years ago and has an excellent reputation in its segment worldwide. During the last 5 years premiums earned has grown by an average of more than 25% p.a.
In 1999 IHI had premiums earned of DKK 674 millions, total assets of DKK 745 millions and shareholders equity of DKK 246 millions. IHI employs approximately 230 people, most of whom are working in Denmark. In addition to Copenhagen, the company has offices in the UK, France, Spain, Norway, Bolivia and Japan.
Reasons for divestment
The chairman of "danmark" Jørgen Falkensteen comments on the divestment: ”IHI has been growing very quickly and it has required significant capital injections to finance the continued development of the business. These capital requirements combined with the fact that IHI and "danmark"; to an increasing extent has developed into two very
different businesses, led the board of "danmark" to the decision to sell IHI to an investor, who was interested in continuing to develop IHI as one business” and he adds: ”EQT will be a very good owner, since EQT can contribute to the continued development of the company by providing access to capital as well as significant international experience and expertise”
Continued development potential
EQT is planning to support IHI’s continued growth and contribute to the further international expansion. The chairman of EQT Claes Dahlbäck comments on the acquisition: ”IHI is a well run company with an exciting concept and a strong market position. Through close collaboration with the management of IHI, EQT intends to play a proactive role in seeking to contribute the necessary resources for developing the company to the benefit of both customers and employees”. Claes Dahlbäck adds ”EQT is planning to make significant investments in the company as we believe that the globalisation leads to interesting opportunities in the international private medical
insurance business and we will seek to exploit these through our international network and industrial expertise”.
Per Bay Jørgensen, managing director of IHI comments: ”The EQT ownership will allow IHI to maintain and strengthen its position as a leading company in international private medical insurance”
EQT is a group of four private equity funds with equity commitments totalling
SEK 11 billion. Since its inception in 1994, EQT has successfully concluded investments in 22 companies. EQT Partners, acting as investment advisor to all EQT funds, has offices in Stockholm, Copenhagen, Helsinki and Munich. EQT Scandinavia’s business concept is acquiring high quality smaller and medium sized companies in Scandinavia, and serving as an active owner in close co-operation with the management of the companies it acquires.
For additional information please contact :
Bjørn Høi Jensen, Partner, EQT Partners A/S, København
+45-70 27 12 36
Claes Dahlbäck, Chairman, EQT Scandinavia B.V.:
+31-20-577 66 70
Jørgen Falkensteen, Chairman, ”danmark”
+45-33 30 17 00
Per Bay Jørgensen, Adm. Direktør, IHI
+45-33 15 30 99