RSA Insurance Group

History

2020: Intact Financial purchased RSA Insurance Group for $9.6 billion

In the middle of November, 2020 the British insurance company RSA Insurance Group was sold for $9.6 billion the Canadian company Intact Financial and the Danish insurance company Tryg A/S. This transaction became the largest contract about the absorption and merge registered in Great Britain in 2020 notes Bloomberg.

According to the plan of RSA will separate, at this Intact will save the operations in Canada, Great Britain and abroad. Tryg will undertake the Swedish and Norwegian transactions thanks to what it will become the company, largest in Scandinavia, on proprietary insurance and accidents insurance. The Danish business of RSA will be in a joint property of two firms. Tryg will pay about 4.2 billion pounds, and Intact about 3 billion pounds.

Intact Financial purchased RSA Insurance Group for $9.6 billion

The offer approximately for 50% exceeds the share price for November 4 when the companies completed negotiations on absorption. Among the European insurance companies this purchase became the largest transaction in ten years, the chief executive officer of RSA Stephen Hester told. Hester will throw RSA after completion of the transaction which as analysts consider, he prepared since 2014. If the transaction gets approval of shareholders and regulating authorities, sale to the company will make for Hester an additional profit. Its share in the amount of a little more than 1 million stocks of the company will cost about 7 million pounds sterling at the selling price of 685 pence for an action.

Marked out Hester that the high selling cost of the company was provided by business transformation which the management purposefully carried out within six years. According to him, the company during three of four years broke own records on profit on underwriting and also showed high profit in difficult market conditions and reorganized the management team.^[1]

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