Intact Financial Corporation and its subsidiary RSA announced March 28 that the company plans to exit the personal lines motor market in the United Kingdom.
“The personal lines motor market in the UK remains extremely competitive and requires significant scale to drive meaningful outperformance. After a thorough review, RSA is exiting the UK personal lines motor market, representing approximately £120-million of annual premium for the company,” Intact writes in a statement announcing the plan. “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.”
Intact’s CEO, Charles Brindamour says “when we completed the acquisition of RSA, we were clear that we would take the necessary actions to drive sustainable outperformance.”
The deal is expected to release approximately £60-million of capital held against motor-related insurance risk over time.