Intact will pay
They will co-own RSA's Danish business and RSA shareholders, who still need to approve the deal, will nab an unpaid interim dividend of
"We have been thinking about finding a way to make this transaction possible for many years...but the conditions were not always right for this to work," Intact chief executive
"Earlier this spring and early summer, it became clear to us that the timing would be very good to put a transaction together and work off the strength of the RSA platform to make this possible, so it's been a long thought process and relationship."
Brindamour framed the deal as a way for Intact to boost its annual premiums, which it expects to increase by about 30 per cent to reach
The deal also helps Intact gain a toehold in the
Intact said the deal will involve some job cuts at head office, but wouldn't share numbers. It vowed to provide details on the number of staff impacted within 120 days of the deal's completion.
Meanwhile, Tryg estimated between 10 and 15 per cent of the workforce in
The acquisition is expected to be completed during the second quarter of 2021.
To help finance its purchase, Intact has signed deals with some of
The company announced last week agreements with the Caisse de depot et placement du Quebec, the
CDPQ will invest
Intact has also signed a deal to raise an additional
RSA employs around 13,500 people worldwide and has about nine million customers across more than 100 countries.
Founded more than 305 years ago, RSA is one of the world’s longest-standing general insurers. Its brands, including More Than, offer personal insurance for home, car, pet and travel. The company also has a commercial insurance arm.
"RSA has provided peace of mind to individuals and protected businesses from risk for more than 300 years," said RSA chairman
"I am confident that the values of our business, and not least our dedication to serving customers well, will be sustained as part of Intact and Tryg."
— With files from The Associated Press
This report by
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