- Agreement with Atlanta Group for MORE THAN direct motor renewals
UK Personal Lines business to continue focusing for performance in Home and Pet- Ongoing technology renewal and simplification to drive efficiency across the platform
UK & International business accelerates its path to deliver a low-90s combined ratio
The personal lines motor market in the
RSA is recognized as a leading provider of personal lines Home and Pet insurance and holds strong positions in these markets. We will continue to optimize our position in Home and Pet by improving segmentation, focusing on growth in the direct business and managing partnerships for value. We also intend to drive cost improvements by leveraging ongoing investments in technology and through further simplification of the business. With these actions, as well as the exit from the
"When we completed the acquisition of RSA, we were clear that we would take necessary actions to drive sustainable outperformance in UK&I," said
"Our primary focus now is on delivering an orderly transition that supports our colleagues and customers," said
- The results of the
UK Personal Lines motor portfolio will be reported in Exited lines from Q1 2023 onwards. - In 2023, we expect the combined ratio of the continuing UK&I business to be in the mid-90s.
- Restructuring costs of approximately £35 million are expected in Q1 2023, mostly related to a one-time write-off of intangibles.
- Proceeds from the agreement with Swinton will be received as policies are renewed and are not expected to be material.
- We expect to release approximately £60 million of capital held against motor-related insurance risk over time as the portfolio runs off.
- All key metrics related to the RSA acquisition remain largely unchanged, including internal rate of return (IRR) above 20% and NOIPS1 accretion of approximately 20%.
1 This measure is a non-GAAP ratio, which does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures used by other companies in our industry. For historical information about these measures, please see Section 36 – Non-GAAP and other financial measures in our Management's Discussion and Analysis for the year ended |
In
In the US, Intact Insurance Specialty Solutions provides a range of specialty insurance products and services through independent agencies, regional and national brokers, and wholesalers and managing general agencies.
In the
Certain statements made in this press release are forward-looking statements. These statements include, without limitation: statements relating to the anticipated benefits and other impacts of the transaction, the sources of funding for the upfront contribution, and the anticipated effect on OROE, BVPS, NOIPS, debt-to-total capital ratio, IRR and pre-tax annual run-rate synergies. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws.
Forward-looking statements are based on estimates and assumptions made by management based on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Many factors could cause the Company's actual results, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements. In the case of estimated claims and losses, due to the preliminary nature of the information available to prepare estimates, future estimates and the actual amount and categorization of claims and losses associated with events described above may be materially different from current estimates.
All of the forward-looking statements included in this press release are qualified by these cautionary statements and those made in the "Risk Management" sections of our 2022 Management's Discussion and Analysis (Sections 30-34), in Notes 10 and 13 of our Consolidated Financial Statements for the year ended
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