RSA to be acquired by insurers Intact and Tryg for £7.2bn

UK-based RSA Insurance Group has agreed a £7.2 billion takeover offer from Canadian insurer Intact Financial Corporation and Scandinavian insurer Tryg.

The transaction will see Intact acquire RSA's Canadian, UK and International operations for a consideration of £3 billion, and Tryg acquire its Swedish and Norwegian businesses for £4.2 billion. RSA shareholders will also recieve an interim dividend of 8 pence per share.

Both Intact and Tryg will co-own RSA's Danish business on a 50/50 economic basis.

The deal has been approved unanimously by the boards of directors of all three companies, and is expected to complete during the second quarter of 2021.

Intact said the acquisition will expand its leadership position in Canada, with annual premiums written expected to increase by approximately 30 percent from $10 billion to $13 billion.

"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," said Intact CEO, Charles Brindamour.