(Reuters) – RSA Group PLC said it is in talks with a consortium of the Canadian insurance company Intact Financial Corp. and the Danish insurance company Tryg A / S on a possible division that values the British company at 7.1 billion pounds (
RSA said that its board would consider recommending the proposal of 685 pence cash per RSA share, plus that RSA paid its previously announced dividend of 8 pence per share.
RSA said it received the proposal on October 2, which values home, motor and commercial insurers at a premium of 50% to its closing price on October 1.
Intact and Tryg have until December 3 to submit a fixed offer.  (Intact bought the American insurer OneBeacon Insurance Group Ltd. 201
The shares in RSA increased by 46% and closed at 670 pence on Thursday. analysts said the offer price represented "more than fair value."
Robey Warshaw, Goldman Sachs and Bank of America are working with RSA on the deal, says the insurer. da, Ireland and Scandinavia.
Under the terms of the transaction, Intact will retain RSA's operations in Canada and the United Kingdom and internationally, while Tryg will take control of RSA's operations in Sweden and Norway. Intact and Tryg would be partners in RSA's operations in Denmark.
RSA appointed Christian Baltzer, a former CFO of Tryg, as head of its Danish operations last year.
The insurer has been open to offers since 2015 when an earlier bidding method from Zurich Insurance Group Ltd. fell through, say industry sources. Both Intact and Tryg have been listed as potential bidders for several years.
RSA's CEO Stephen Hester, a former head of NatWest who joined RSA in 2014, has reduced underperforming business. Non-pandemic-related claims and a tightening of its insurance strategy increased RSA's insurance results during the first nine months of 2020, despite the effects of COVID-19, it said earlier. compared to 93.6% at the end of 2019.
The insurer said it revised down its initial estimate of the gross effect of a September judgment in a UK test case brought by the UK Market Interruption Authority. insurance with about 20 million pounds.