Intact Financial and Tryg to acquire British insurer RSA for £7.2bn
Intact Financial, a Canadian insurance giant, and Danish insurance company Tryg have struck a deal to acquire British insurance group RSA for nearly £7.2 billion in cash.
RSA operates in the general insurance markets of the UK, Scandinavia, and also Canada. The company also has a presence in Ireland, Continental Europe, and the Middle East. Its 2019 net written premiums were £6.4 billion.
Martin Scicluna – Chairman of RSA said: “The board of RSA is pleased to be recommending Intact and Tryg’s cash offer for the company, which delivers attractive, certain value for our shareholders. The offer reflects the strength and performance of RSA during a challenging period for our industry, representing a significant premium in cash.
“We believe that our staff, our businesses and our customers can prosper under the stewardship of Intact and Tryg, two great businesses with long histories and strong reputations.”
Intact Financial and Tryg to acquire British insurer RSA for $12.3bn. Photo courtesy of Raysonho @ Open Grid Scheduler / Grid Engine / Wikipedia.org.
As per the terms of the deal, Intact Financial will pay £3 billion, while Tryg’s share will be £4.2 billion.
Intact Financial will completely own RSA’s Canadian, UK, and International (UK&I) entities. On the other hand, Tryg will completely own RSA’s Swedish and Norwegian businesses.
Both Intact Financial and Tryg will co-own the Danish business of RSA.
Charles Brindamour – Intact Financial CEO said: “This acquisition is highly strategic for Intact. It expands our leadership position in Canada, builds on our strong track record in specialty lines, and puts us in a solid position to strengthen RSA’s UK and Ireland operations. We have strong capabilities in data, risk-selection and claims management, which we plan to leverage across the business.
“I look forward to welcoming RSA’s employees into our company and leveraging their deep expertise across the business. Together, we are stronger and more resilient.”
The deal, which is subject to approval from RSA’s shareholders, regulatory approvals, and meeting of other conditions, is currently anticipated to be closed during Q2 2021.