Intact Financial Corp. has kicked off the sale of its personal insurance subsidiary in the UK, which could be valued at around £500 million ($620 million), people with knowledge of the matter said.
The Canadian insurer is working with JPMorgan Chase & Co. to gauge buyer interest in RSA’s personal lines business, which covers everything from home to pet protection, according to the people. The business sells policies directly to clients and also includes partnerships with other financial institutions, they said.
Bids are due in the coming weeks, the people said, asking not to be identified discussing confidential information.
Toronto-based Intact and Danish insurance group Tryg A/S completed their takeover of RSA in 2021. The deal gave Intact control of RSA’s Canadian and UK and international operations, while Tryg took the Swedish and Norwegian arms. In March, Intact announced that RSA’s personal lines business will exit the competitive market for motor insurance.
Through RSA, Intact has been pushing more into commercial insurance in the UK. This month, it agreed to acquire the brokered commercial platform from Direct Line Insurance Group Plc in a deal that could rise to £550 million. Intact said at the time it is pursuing a strategic review of its personal lines business in the UK.
A spokesperson for Intact said the review may result in a sale. “The strategic review of these options is underway and is expected to be completed in Q4 this year,” they said. A representative for JPMorgan declined to comment.
–With assistance from Christine Dobby.
Photograph: Bundles of new polymer British 20-pound banknotes sit in a basket in a warehouse operated by G4S Plc in London, U.K. on Thursday, Feb. 20, 2020. Photo credit: Jason Alden/Bloomberg
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