Tuesday 1 June 2021 8:30 am

RSA Insurance bought for £7.2bn by Canadian and Danish buyers

A consortium of Canadian and Danish buyers have completed the acquisition of RSA Insurance, in a deal worth £7.2bn.

Under the terms of the all-cash deal, Danish buyer Tryg will take over the Swedish and Norwegian arms of RSA, while Canada’s Intact will have the Canadian, British and international businesses.

RSA, which owns brands including More Than, is in the process of de-listing from the London Stock Exchange, with shareholders entitled to receive 685 pence in cash for each share held.

RSA group chairman Martin Scicluna said: “RSA has provided peace of mind to individuals and protected businesses from risk for more than 300 years.

“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 insurance group, which specialises in home, motor and commercial insurance, posted double-digit profit ahead of the deal, with RSA’s operating profit recorded as £751m in 2020, up 15 per cent year-on-year.

Group underwriting profit also jumped 36 per cent to a record high of £550m.