RSA has agreed to a £7.2bn takeover from two international insurance brands, resulting in a break up of the company which has operated for more than 300 years.
The insurer has accepted a £3bn cash offer from Canadian insurer Intact Financial Corporation and a £4.2bn sum from Nordic insurer Tryg.
Under these new terms Intact and Tryg will now divide RSA’s international branches with Intact keeping its Canada and UK operations, and the Danish group controlling RSA’s Sweden and Norway firms.
It has also been reported that the two companies will share the ownership of RSA’s Danish business.
RSA shareholders will continue to be entitled to receive the interim dividend of 8 pence per RSA share.
The announcement follows news made public back in April that RSA had trouble “cancelling its dividend” following debates with the Prudential Regulation Authority as the Covid-19 crisis worsened in the UK.
Martin Scicluna, the chairman of RSA said: “The board of RSA is pleased to be recommending Intact and Tryg’s cash offer for the company, which delivers attractive, certain value for our shareholders.
“The offer reflects the strength and performance of RSA during a challenging period for our industry, representing a significant premium in cash.”
He added: “We believe that our staff, our businesses and our customers can prosper under the stewardship of Intact and Tryg, two great businesses with long histories and strong reputations.”
“RSA has provided peace of mind to individuals and protected businesses from risk for more than 300 years. That history has seen significant consolidation in the insurance industry, a process that continues today.
“However, I am confident that the values of our business, and not least our dedication to serving customers well, will be sustained as part of Intact and Tryg.”