TORONTO — Insurance company Intact Financial Corp. says its Royal & Sun Alliance Insurance Ltd. subsidiary has signed a deal to sell its U.K. home and pet insurance business to Admiral Group.
The company says the sale includes an initial cash payment of 82.5 million pounds, with a potential additional payment of up to 32.5 million pounds, subject to certain retention thresholds.
The proceeds from the sale and the release over time of capital backing the U.K. personal lines business are expected to total about 350 million pounds, including the benefit of earnout provisions, Intact says.
The deal will result in the transfer of renewal rights, brands and employees. Around 300 RSA employees are expected to move to Admiral.
Intact says it will also work to exit its home and pet partner and broker contracts in the U.K.
The sale has been approved by the boards of directors of Intact and Admiral. It is expected to close at the end of the first quarter of 2024.
This report by The Canadian Press was first published Dec. 7, 2023.
Companies in this story: (TSX:IFC)