RSA is a UK-based subsidiary of Canada’s Intact Financial Corporation. In a statement, Intact said: “The purchase price includes an initial cash consideration of £520 million, with potential for up to a further £30 million contingent payout under earnout provisions relating to the financial performance of the acquired business lines.”
Following the completion of the transaction – pending a vote from Direct Line shareholders in October – will result in the ‘transfer of renewal rights, brands, employees, and systems to RSA’, Intact added. Around 800 Direct Line employees will be covered by the move to RSA.
Votes of approval have already been obtained from the boards of both Intact and Direct Line.
“This acquisition significantly strengthens our UK and international business, and is strongly aligned with our strategic and financial objectives,” said Charles Brindamour, Chief Executive at Intact. “The transaction enhances our position in the UK by doubling down on lines of business where we already outperform.”
Direct Line Group has announced the creation of a Chief Customer Office and a Chief Commercial Office in October of last year.