News ·
Rieber & Søn Is Making Further Investments in the Insurance Industry
Throughout 2020 and into 2021, WaterCircles has experienced strong growth in new sales volumes, which in turn has led to strong growth in its premium portfolio. In 2020 alone, the premium portfolio grew by over 30% and has now surpassed half a billion kroner. Despite this growth, claims volumes have remained s
To secure WaterCircles’ solvency capital for further growth and to improve its current solvency position, WaterCircles has entered into an agreement to sell its agents (subsidiaries) to the newly established company Urzus Holding AS for just over 300 MNOK on an enterprise value basis. Urzus Holding is owned by Rieber & Søn, along with certain other indirect and direct shareholders in WaterCircles Forsikring ASA. Following the transaction, WaterCircles will have a solvency capital coverage ratio of over 200% and will be well-capitalized for continued growth in the coming years. The Financial Supervisory Authority of Norway has approved the transaction.
A 7-year distribution agreement has been entered into between WaterCircles and the agent companies that are now being acquired. WaterCircles has also been granted a right of repurchase of the companies at specified prices within 15 months. Overall, this provides predictability for both WaterCircles and the agent companies that have been transferred.
Through its subsidiary SOIA II AS, Rieber & Søn will remain the largest shareholder in WaterCircles even after the transaction, but will no longer be represented on WaterCircles’ board of directors. Trond Valvik, Chief Investment Officer at Rieber & Søn, did not participate in the WaterCircles board’s deliberations regarding the sale of the agency companies. Valvik is stepping down from his board position at WaterCircles as a result of the transaction and will join the board of Urzus Holding AS.
Current shareholders of Urzus Holding AS will offer other WaterCircles shareholders the opportunity to become shareholders in Urzus Holding AS and share in the financial exposure of that company as well, to the extent that they wish to do so.