Purchase makes R&SA the sixth largest insurer in Canada
Royal & Sun Alliance Insurance Group (R&SA) has announced an agreement to acquire Canadian Northern Shield Insurance Company (CNS) for approximately C$75m (£37m) payable in cash.
The transaction is subject to regulatory approvals.
CNS is a leading P&C insurer in British Columbia, with strong positions in property, liability and private auto. In 2006 it delivered gross written premiums of C$164m (£78m). The acquisition will make R&SA the market leader in British Columbia and the sixth largest general insurer in Canada and is consistent with R&SA's strategy of building leading positions in targeted segments and geographies.
Simon Lee, Chief Executive of Royal & SunAlliance International Businesses said, 'We already have an excellent business in Canada and this transaction will significantly strengthen our position. It brings a greater balance to our existing book with a high proportion of CNS's business in personal property and commercial lines. It also provides a more balanced geographic spread and makes us the largest general insurer in the attractive British Columbia market.
The combination of our technical excellence and CNS's additional distribution and product capability will enhance our platform for delivering profitable growth.'
A presentation on R&SA's Canadian business for analysts and investors will take place in London on Wednesday 7 November hosted by Simon Lee, CEO of R&SA's International Businesses and Rowan Saunders, CEO of R&SA Canada.
