Intact Financial’s bid for UK-based insurer RSA has secured approval from RSA Shareholders as well as the Canadian Competition Bureau.
In November this year, Intact, together with Tryg, agreed to insurer RSA in £7.2bn deal.
Under the agreement, Intact will snap up RSA’s Canadian, UK and international (UK&I) businesses while Tryg will retain RSA’s Swedish and Norwegian operations.
Both Intact and Tryg will co-own RSA’s Danish operations on an equal basis. The Scandinavian operations of RSA will be spun-off.
Intact Financial Corporation CEO Charles Brindamour said: “Today’s RSA shareholder vote is an important milestone.
“With shareholder support and the Canadian Competition Bureau’s recent approval, we remain on track to complete the Acquisition in the second quarter of 2021. Planning is underway and we look forward to welcoming our RSA colleagues into the Intact family.”
The purchase of RSA is expected to bolster Intact’s presence in the homemarket, where it offers property and casualty insurance products and services.
Additionally, it will the Canadian insurer to expand its North American specialty lines and foray into the UK and Ireland.
Moreover, the deal is expected to generate significant value for Intact through growth, loss ratio and expense ratio improvements across the operations.
The closing of the transaction is anticipated to take place in the second quarter of this year.
It subject to receipt of approval from the relevant regulatory and antitrust authorities and the satisfaction of other conditions to closing.
In 2019, Intact closed the previously announced takeover of The Guarantee Company of North America and Frank Cowan Company in a transaction worth $1bn.