Intact sells UK direct personal lines operations to Admiral
Intact Financial Corporation and its subsidiary RSA have reached an agreement to sell RSA’s UK direct personal lines operations (home and pet), representing approximately £165 million of annual premiums, to Admiral Group. The transaction will result in the transfer of renewal rights, brands and employees. RSA will retain the claims reserves, which will be run off over time.
The sale has been approved by the boards of directors of both Intact and Admiral, and is expected to close at the end of Q1 2024.
RSA will also exit its UK home and pet partner and broker contracts representing annual premiums of approximately £515 million, and is exploring options to either transfer these arrangements to other parties or let the contracts expire over time. This step completes RSA’s exit of the UK Personal Lines market and marks the conclusion of the strategic review announced on September 6, 2023.
The sale price for RSA’s direct home and pet operations includes an initial cash consideration of £82.5 million, with a potential additional payment of up to £32.5 million, subject to the fulfillment of certain retention thresholds. In aggregate, the proceeds from the sale to Admiral and the release over time of capital backing the UK Personal Lines business are expected to total approximately £350 million, including the benefit of earnout provisions.
“The exit from the UK personal lines market sharpens RSA’s focus as a leading UK commercial and specialty lines player, accelerating our ability to deliver sustainable outperformance in the UK&I segment.” – Charles Brindamour, CEO, Intact Financial Corporation.
“We recognize the important work of our Personal Lines colleagues in building RSA’s leading Home and Pet businesses. I’m confident that Admiral’s shared values and track record in delivering excellence for customers makes them a perfect fit for our UK direct Personal Lines business. Our focus is on ensuring an orderly transition that supports our customers, colleagues and partners.” – Ken Norgrove, CEO, RSA.
RSA will focus its resources on its commercial and specialty lines platform, which has consistently been delivering low-90s combined ratios.
RSA will continue to maintain its personal lines presence in Ireland, where it is recognized as a leading provider of motor and home insurance, in addition to commercial insurance.
