(Alliance News) - A two-headed consortium of buyers on Tuesday completed the takeover of RSA Insurance Group PLC for GBP7.2 billion.
The deal will see the insurer divided between Canada's Intact Financial Corp and Scandinavian insurer Tryg AS. Tryg's contribution will be GBP4.2 billion with Intact's portion of the deal amounting to GBP3.0 billion.
Under the deal, RSA shareholders will receive 685 pence in cash for each share. In addition, RSA shareholders will be entitled to receive the insurer's interim dividend of 8p.
"RSA has provided peace of mind to individuals and protected businesses from risk for more than 300 years," commented RSA Chair Martin Scicluna.
"That history has seen significant consolidation in the insurance industry, and we believe that RSA's businesses, customers, employees and other stakeholders will prosper under the stewardship of Intact and Tryg, two great businesses with long histories and reputations.
"The acquisition of RSA has delivered attractive, certain value for our shareholders and I wish Intact and Tryg every success for the future."
The insurer reported gross written premiums of GBP2.05 billion ahead of the deal, up 2% on a year ago. Business operating profit nearly doubled for the same period, with a significantly improved combined ratio of 86%, its best quarterly result of the last decade.
Shares in RSA are suspended in London on Tuesday, before its delisting is finalised on Wednesday morning.
By Will Paige; willpaige@alliancenews.com
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