Intact Financial Corp. and Tryg complete acquisition of UK insurance company RSA

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Intact Financial Corp. announced that it, together with Tryg A / S, has completed the acquisition of RSA Insurance Group plc. After obtaining all required permits.

Intact, headquartered in Toronto, retains RSA operations in Canada, the UK and overseas, while Tryg, headquartered in Ballerup, Denmark, retains RSA’s operations in Sweden and Norway. Intact and Tryg are co-owners of the Danish RSA business.

The total deal value is approximately £ 7.2 billion ($ 10.2 billion), with Intact Financial paying £ 3.0 billion ($ 4.3 billion) and Tryg paying £ 4.2 billion ( $ 6.0 billion).

Read more: Canada’s intact financials caps a decade of acquisitions to a $ 9.4 billion deal

Intact said the acquisition increases its premiums by approximately 70% and enables further investments “in the company’s core data, risk selection, claims management and supply chain capabilities to maintain and improve performance in the markets in which it operates.”

Tryg said in November’s announcement of the deal that its acquisition of RSA operations would create the largest non-life insurance company in Scandinavia, increasing premiums by about 45%. In addition, thanks to him, Tryg will be included in the top three largest insurers in Sweden and Norway.

Among the advantages of the deal listed by Intact were a 30% increase in its Canadian premiums to approximately $ 13 billion, nearly two-thirds of the company’s total insurance base, as well as an increase in its North American platform of specialized lines with new international capabilities. scale and expertise in existing lines, as well as adding new verticals.

“The specialized lines platform will grow by about 30% to over $ 4 billion in annual premiums and will include the world’s leading maritime and specialty real estate franchises,” the company said in a June 1 statement confirming the completion of the deal.

Meanwhile, Fitch Ratings confirmed insurer financial strength rating (IFS) of subsidiary insurance companies Intact Financial Corp. at ‘AA-‘ (very high) on the upgrade of the IFS rating of RSA’s operating subsidiary, Royal & Sun Alliance Plc, to ‘AA-‘ from ‘A +’.

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