RSA to become fourth largest general insurance company in Canada
RSA has agreed a deal to acquire Canadian commercial insurer GCAN Insurance Company for CAD 420m (GBP 259m).
GCAN has a combined operating ratio (COR) of 81% and gross written premiums of CAD 255m (£157m) in 2009. The insurer's average COR over the last five years is around 77%. Its offering includes property, liability and motor.
RSA said following the deal it will become the fourth largest general insurer in Canada, with pro-forma gross written premiums for 2009 of approximately CAD 2.2bn for the combined entity.
The insurer said the acquisition of GCAN will strengthen its commercial proposition by adding "further technical expertise, geographic diversification and product breadth". The deal will also drive significant additional reinsurance and capital benefits and other synergies, the company said.
RSA group chief executive, Andy Haste, said: “At RSA we have great businesses with strong market positions delivering excellent results. Over the last five years, RSA Canada has grown its premiums by around 60% and doubled its underwriting result.
"The acquisition of GCAN accelerates this momentum and takes us to number four in the market. This is a great deal for RSA Canada and the Group and we are excited about the strong potential of the combined business.”
The deal is still subject to regulatory approval.
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