Insurance company Intact Financial has initiated the process to sell the personal lines business of its UK subsidiary RSA, reported Bloomberg citing undisclosed sources.
Based in Toronto, Canada, Intact has hired JPMorgan Chase & Co to assess potential customers’ interest in RSA’s operations, which could be valued at £500m, the sources said.
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The personal lines division sells insurance directly to customers and also has joint ventures with other financial institutions.
According to the sources, bids are due in the upcoming weeks.
In 2021, Intact and Danish insurance company Tryg completed the acquisition of RSA.
Through the deal, Intact gained control over RSA’s operations in the UK, Canada and overseas whereas Tryg took over RSA’s business in Norway and Sweden.
According to an Intact representative, the assessment could lead to a sale.
The publication quoted an Intact representative as saying: “The strategic review of these options is underway and is expected to be completed in Q4 this year.”
JPMorgan’s representative declined to comment on the development.
In March 2023, Intact announced that RSA’s personal lines business would leave the “fiercely competitive” auto insurance industry.
The Canadian insurer is trying to expand its commercial insurance operations in the UK through RSA.
Earlier this month, Intact and RSA reached an agreement to acquire the commercial lines business of Direct Line Insurance in a £550m deal.
At the time, Intact Financial CEO Charles Brindamour said: “This acquisition significantly strengthens our UK&I business, and is strongly aligned with our strategic and financial objectives.
“The transaction enhances our position in the UK by doubling down on lines of business where we already outperform.”
