The synergies that will result from the transfer of RSA to Intact Financial Corporation are estimated at $250 million before taxes.
Intact CEO Charles Brindamour spoke of the upcoming integration during a conference call with financial analysts following the release of the fourth quarter 2020 financial results.
No fewer than 27 transition teams are easing the two insurers’ integration. "Each of those teams has a specific target that’s informed by the information that we’ve had access to, and, therefore, we gain confidence in our ability to deliver the goods," Brindamour explains.
The Intact CEO says he expects to improve the insurer's loss ratio once the integration is complete. He is particularly pleased about this achievement.
"As we discover some of the assets in the UK & Ireland parameters, we see a fair bit of value in some of the assets that we didn’t know as well,” he said, adding that the projected $250 million in synergies does not include these new elements.
Regarding the integration, Brindamour points out that “We’ve met with most of the senior management team as we undertake strategic reviews of the business. I’m pleased with the engagement in our shared pursuit of outperformance, and I look forward to welcoming our RSA colleagues into the Intact family in the coming months.