Swiss insurance firm Helvetia has received the necessary approvals for its planned takeover of a Spanish firm. It plans to conclude the transaction by the end of the month.
St. Gallen-based Helvetia intends to finalize the acquisition of Spanish insurer Caser by the end of June, according to a statement issued on Tuesday. This after the Spanish authorities and the European Union competition commission agreed to the deal.
Helvetia will pay a total of 780 million euros for Caser, a transaction that will propel the Swiss firm to No. 7 spot in the Spanish insurance industry. Caser is a diversified provider of insurance solutions that has built its own eco-system through the use of new distribution channels in recent years. Its product range includes the services for real estate, care homes for the elderly and hospitals.
Covid-19: Slowdown Followed by Pick-Up
The deal, which won't affect the result of the first half, will add to the business in Europe and make this market a second strong division within the firm. It will also substantially broaden the scope of the non-life business and boost the distribution in Spain.
The financing of the deal is secured through existing liquidity, Helvetia said.
The economic repercussions of the pandemic on the company have also been assessed, Helvetia reported. They will have a negative effect on the investment performance of an amount in the low three-digits. Helvetia said that Covid-19 had dampened demand for its services, but that it now saw a pick-up in activity.
