Intact Financial Corporation approved to complete purchase of DLG's brokered Commercial Lines operations

Intact Financial Corporation approved to complete purchase of Direct Line Insurance Group plc’s brokered Commercial Lines operations (19 October 2023).

Intact Financial Corporation and its subsidiary RSA announced today that all conditions related to its acquisition of Direct Line Insurance Group plc’s brokered Commercial Lines operations have been fulfilled. The transaction is anticipated to close on October 26, upon payment of a £520 million cash consideration.

As announced on 6 September 2023, the company will fund the purchase price and expected integration costs using the proceeds from its recently completed $575 million common share offering and $400 million medium-term note issuance.

Upon closing, substantially all of the future economics of Direct Line’s brokered Commercial Lines portfolio will have been transferred to RSA effective October 1, 2023 through a quota share reinsurance agreement.

Authored by Intact Financial Corporation and RSA