LONDON, Nov 18 — British insurer RSA has agreed to a takeover by Canadian and Danish peers Intact and Tryg for £7.2 billion (RM39 billion), the companies announced today.
“Pursuant to the transaction, Intact will retain RSA’s Canadian, UK and international operations, Tryg will retain RSA’s Swedish and Norwegian businesses, and Intact and Tryg will co-own RSA’s Danish business,” a statement said.
The cash deal sees Tryg paying £4.2 billion and Intact £3.0 billion.
“This transaction is highly strategic for Intact and today we have reached an important milestone,” said Intact chief executive Charles Brindamour.
“Acquiring RSA’s strong businesses will expand our leadership position in Canada... and provide a substantial opportunity to build on the UK and international operations.”
Tryg CEO Morten Hubbe said the deal would “create significant value” for its shareholders.
“We look forward to consulting with our shareholders and other stakeholder groups in the weeks ahead to progress and ultimately to successfully complete the transaction,” he added.
RSA chairman Martin Scicluna said the offer “reflects the strength and performance of RSA during a challenging period for our industry, representing a significant premium in cash”.
The offer price represents a 51-per cent premium to RSA’s closing share price on November 4 — the day before the takeover plans were made public.
“We believe that our staff, our businesses and our customers can prosper under the stewardship of Intact and Tryg, two great businesses with long histories and strong reputations,” Scicluna said.
London-listed RSA traces its history back more than 300 years, serving currently nine million customers in more than 100 countries.
RSA today said that “the recovery path from the pandemic remains uncertain” for the insurance industry.
Lloyd’s of London, the world’s largest insurance market, estimated in May that Covid-19 would cost the sector more than US$200 billion. — AFP
