Intact Financial Corp. and Tryg Complete Acquisition of UK’s RSA Insurance

By | June 1, 2021

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

Toronto-based Intact retains RSA’s Canadian, UK and International entities, while Tryg, which is heaquartered in Ballerup, Denmark, retains RSA’s Swedish and Norwegian operations. Intact and Tryg co-own RSA’s Danish business.

The full price tag for the transaction is approximately £7.2 billion (US$10.2 billion) with Intact Financial paying £3.0 billion (US$4.3 billion) and Tryg paying £4.2 billion ($6.0 billion).

Read more: Canada’s Intact Financial Caps Decade of Acquisitions with $9.4 Billion RSA Deal

Intact said the acquisition increases its premiums by approximately 70% and enables further investment “in the company’s core capabilities of data, risk selection, claims and supply chain management to sustain and drive increased outperformance across the markets in which it operates.”

In its November announcement about the deal, Tryg said its purchase of RSA’s operations will create the largest non-life insurer in Scandinavia, increasing premiums earned by approximately 45%. In addition, it will establish Tryg as a top three insurer in Sweden and Norway.

Among the deal’s advantages listed by Intact were a 30% increase in its Canadian premiums to an estimated $13 billion, which represents close to two-thirds of the company’s aggregate premium base and a boost to its North American specialty lines platform with new international capabilities, scale and expertise in existing lines, as well as the addition of new verticals.

“The specialty lines platform will grow by approximately 30% to over $4 billion of annual premiums and will include leading global franchises in marine and specialty property,” the company said in a June 1 statement to confirm the completion of the transaction.

Meanwhile, Fitch Ratings affirmed the Insurer Financial Strength (IFS) ratings of Intact Financial Corp.’s insurance subsidiaries at ‘AA-‘ (very strong), while upgrading the IFS of RSA’s operating subsidiary, Royal & Sun Alliance Plc, to ‘AA-‘ from ‘A+’.

Topics Mergers

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