Intact Financial Corp. says its joint venture with Tryg A/S has signed a deal to sell Codan Forsikring A/S's Danish business (Codan DK) to Alm. Brand A/S Group for about $2.52 billion.
Fitch Affirms Intact’s Ratings After RSA Acquisition; RSA Subsidiary Upgraded to ‘AA-‘ June 2, 2021
Fitch Ratings has affirmed the Insurer Financial Strength (IFS) ratings of Intact Financial Corp.’s insurance subsidiaries at ‘AA-‘ (very strong), after its acquisition of RSA Insurance Group. Fitch also upgraded the IFS of RSA’s operating subsidiary, Royal & Sun Alliance Plc, to ‘AA-‘ from ‘A+’.
Fitch affirmed Intact’s senior unsecured debt at ‘A-‘; preferred shares at ‘BBB’ and Issuer Default Ratings (IDR) at ‘A’ and RSA Group’s senior unsecured debt at ‘A-‘, subordinates notes at ‘BBB+’ and restricted tier 1 notes at ‘BBB-‘.
All ratings have a Stable Rating Outlook.
Intact Financial Corp. and Tryg Complete Acquisition of UK’s RSA Insurance
Intact Financial Corp. announced that, together with Tryg A/S, it has completed the acquisition of RSA Insurance Group plc., after receiving all required approvals.
Toronto-based Intact retains RSA’s Canadian, UK and International entities, while Tryg, which is heaquartered in Ballerup, Denmark, retains RSA’s Swedish and Norwegian operations. Intact and Tryg co-own RSA’s Danish business.
The full price tag for the transaction is approximately £7.2 billion (US$10.2 billion) with Intact Financial paying £3.0 billion (US$4.3 billion) and Tryg paying £4.2 billion ($6.0 billion).
Intact said the acquisition increases its premiums by approximately 70% and enables further investment “in the company’s core capabilities of data, risk selection, claims and supply chain management to sustain and drive increased outperformance across the markets in which it operates.”