Tryg Forsikring issues SEK 1bn Restricted Tier 1 capital notes

Plesner assisted Denmark’s largest insurance company, Tryg Forsikring, with a SEK 1bn issue of capital notes, so-called Restricted Tier 1 capital. The notes were primarily sold to Scandinavian asset managers and pension funds.

Restricted Tier 1 capital has much in common with Additional Tier 1 capital issued by banks, for instance perpetual maturity, interest payments can be cancelled without constituting an event of default, and there is an option of compulsory write-down of the notes if Tryg Forsikring should face financial difficulties. However, there are also significant differences. In contrast to Additional Tier 1 capital issued by banks, the issue of Restricted Tier 1 capital for insurance companies is relatively rare with only a handful of issues in total in Scandinavia in recent years.

Danske Bank and Nordea acted as Joint Lead Managers on the issue, and the notes are expected to be listed on Oslo Børs ASA before 1 September 2021.

Read Tryg Forsikring’s company announcement about the issue here.

Tryg Forsikring has 4 million customers and 4,400 employees and is Denmark’s largest insurance company and one of the largest non-life insurers in the Nordic region. For the financial year 2020, Tryg Forsikring posted a profit of approx. DKK 2.8bn, and with a combined ratio of 84.5 (2020) it is one of the most profitable insurance companies in Denmark.

Latest news on Banking and Finance

Banking and Finance

Latest news on Capital Markets