RSA Canada finalizes acquisition of GCAN Insurance

TORONTO, Jan. 10 /CNW/ - RSA Canada, a leading property, commercial and automobile insurer, has received the final regulatory approval to complete its acquisition of GCAN Insurance, the second-biggest insurance transaction of the past decade in Canada.

"We are delighted to enter the New Year having completed this key strategic move," RSA President and CEO Rowan Saunders said. "This acquisition instantly positions us as Canada's fourth-biggest general insurer and one of Canada's leading Commercial insurance providers."

RSA announced in October 2010, that it had agreed to acquire GCAN, a leading Canadian mid-market, large risks, and specialty commercial insurer with gross written premiums in 2009 of $255 million, pending regulatory approval. That approval has now been received.

RSA purchased GCAN Insurance Company and its parent company, Glenstone Capital Incorporated, for $420 million from the Ontario Teachers' Pension Plan Board. As GCAN has an estimated surplus capital of about $110 million, the deal is immediately accretive.

"This is an exciting time for us," Mr. Saunders said, "because it represents the union of two key players in Canadian insurance with a combined skill set and distribution reach that creates a formidable presence in the Canadian insurance marketplace. And it comes at a time when these internal strengths will be necessary to compete and thrive in Canada's changing insurance landscape."

About RSA

RSA Canada includes Roins Financial Services Limited, Royal & Sun Alliance Insurance Company of Canada, Quebec Assurance Company, Western Assurance Company, Ascentus Insurance Ltd., Canadian Northern Shield Insurance Company, The Johnson Corporation, Unifund Assurance Company, Noraxis Capital Corporation and is part of RSA Insurance Group plc. RSA Canada employs approximately 3,400 people and is represented by a large network of brokers across the country. In 2009, the Canadian Group wrote $1.9 billion in direct premiums with assets exceeding $5.5 billion. Internationally, RSA Insurance Group plc employs about 23,000 people and has the capability to write business in 130 countries and in 2009 its net written premiums were £6.7 billion.

RSA is a trade name of Royal & Sun Alliance Insurance Company of Canada.

About GCAN

GCAN Insurance Company (GCAN) is a wholly owned subsidiary of Glenstone Capital Incorporated, a portfolio company of Teachers' Private Capital, the private equity department of Ontario Teachers' Pension Plan Board. GCAN is a Canadian commercial property and casualty insurer with offices in Toronto, Montreal, Calgary, and Vancouver. Through a national network of independent brokers, it provides a range of Commercial insurance products including Property, Liability and Motor. For more than 50 years, GCAN has been a trusted name in the Canadian insurance marketplace, and has a strong reputation built on providing flexible innovative solutions and exceptional customer service.

SOURCE Royal

For further information:

Julia Oosterman - RSA
(647) 405-2744, julia.oosterman@rsagroup.ca

Sarah Kennedy - RSA
(416) 366-7600 ext 2987, sarah.kennedy@rsagroup.ca

Profil de l'entreprise

Royal & SunAlliance Canada

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