Insurance giant RSA has acquired L'Union Canadienne, the third-largest intermediated motor and property insurer in Quebec.
"Quebec is the second largest property and casualty insurance market in Canada and delivers loss ratios which are better than the national average. This transaction accelerates our organic strategy in the province and enhances RSA's national proposition across both Personal and Commercial lines," the FTSE 100 firm said in a statement on Wednesday afternoon.
L'Union Canadienne, owned by Co-operators General Insurance Company, distributes its products through a network of more than 200 brokers in had net written premiums of C$270m (£169m) in 2011 (70% were personal, while 30% were commercial).
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RSA is to pay C$150 (£94m) in cash when the acquisition completes, subject to regulatory approval.
"Our group strategy is to drive continued growth and strong profitability in our overseas markets. Canada is an exciting and successful part of this strategy and this acquisition more than doubles our share of the attractive Quebec market, cementing our position as the third largest insurer in the country," said RSA's Chief Executive Office Simon Lee.
Shares were given a lift after the announcement, with the stock up 1.89% at 99.5p by 15:34.
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