RSA announced that it has acquired L’Union Canadienne, Compagnie d’Assurances from Co-operators General Insurance Company, subject to regulatory approval.
“L’Union Canadienne is the third largest intermediated Motor and Property insurer in Quebec, distributing products through a network of more than 200 brokers,” RSA explained. In 2011, net written premiums were around C$270 million [US$261.65 million, £169 million], “split approximately 70 percent Personal and 30 percent Commercial lines. On completion, consideration of C$150 million [US$145.4 million, £94 million] is payable in cash.
RSA noted that “Quebec is the second largest property and casualty insurance market in Canada and delivers loss ratios which are better than the national average. This transaction accelerates our organic strategy in the province and enhances RSA’s national proposition across both Personal and Commercial lines.”
Simon Lee, Group CEO, commented, “Our Group strategy is to drive continued growth and strong profitability in our overseas markets. Canada is an exciting and successful part of this strategy and this acquisition more than doubles our share of the attractive Quebec market, cementing our position as the third largest insurer in the country.”