Coface finalises the acquisition of GIEK Kredittforsikring AS
Coface announces the closing of the acquisition of GIEK Kredittforsikring AS, a company created in 2001, and owned by the Norwegian Ministry of Trade, Industry and Fisheries, that manages a short-term export credit insurance portfolio.
Coface has acquired all GIEK Kredittforsikring AS shares, and the business will thus operate under the brand name Coface GK.
In 2019, GIEK Kredittforsikring AS recorded a total of around €9m (NOK99m) of gross written premiums with a portfolio that is widely focussed on export policies.
This transaction will have a non-material impact on Coface’s solvency ratio. At this stage, Coface expects to book a badwill* in its third quarter 2020 accounts, currently estimated at a positive EUR 8 millions.
With this acquisition, Coface strengthens its market position in the Nordic region. This transaction will allow to combine the broad range of services offered by Coface and its vast international network to enhance the support to Norwegian exporters and contribute to the economic development of the country.
Coface GK Forsikring AS will be integrated into Coface Northern Europe region under the leadership of regional CEO Katarzyna Kompowska.
Xavier Durand, CEO of Coface commented:
“The acquisition of GIEK Kredittforsikring AS is the second external growth initiative of Coface in less than 2 years. It strengthen our presence in this part of the world. The current crisis reinforces the major role played by credit insurance in developing and securing global trade, to the benefit of Coface GK clients”.
*Badwill is based on preliminary estimates and could vary pending final analysis