Admiral Group plc reached an agreement to acquire UK direct Home and Pet personal lines insurance operations of RSA Insurance Group Limited for approximately £120 million.

Admiral Group plc (LSE:ADM) reached an agreement to acquire UK direct Home and Pet personal lines insurance operations of RSA Insurance Group Limited for approximately £120 million on December 7, 2023. The consideration payable at completion is £82.5 million, with a further potential payment of up to £32.5 million depending on the number of policies successfully migrated to Admiral. RSA will retain the claims reserves related to all of its UK Personal Lines business.

This acquisition does not include liabilities relating to existing policies, which will remain with RSA. The transaction will be funded through existing resources and credit facilities. The transaction will see Admiral welcome 300 new colleagues as well as the transfer of the renewal rights and the "MORE THAN" brand.

The sale has been approved by the Boards of Directors of both Intact and Admiral. The transaction is expected to close at the end of Q1 2024 and in Q2 2024. J.P. Morgan Securities plc acted as financial advisor to Intact Financial Corporation and RSA.

Skadden, Arps, Slate, Meagher & Flom (UK) LLP acted as legal advisor to Intact Financial Corporation and RSA Insurance. Barclays PLC (LSE:BARC) acted as financial advisor and Clifford Chance LLP acted as legal advisor to Admiral Group.