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).
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
BC
-
8 of the best properties for sale near ski slopesThe best properties for sale near ski slopes – from a luxury cabin in Geilo, one of Norway’s premier ski resorts, to a large chalet in Valais, Switzerland
-
Cash hoarders take total UK savings to £2 trillion – why aren’t we investing?Investment-shy Brits are hoarding huge amounts of cash in their savings accounts. We look at the case for saving versus investing.
