July 30, 2021 by Greg Meckbach
Nova Scotia motorists with RSA insurance policies can renew through RSA until November 4, the province’s auto insurance regulator said in its July 28 ruling on Intact Insurance Company’s rate filing.
On June 1, Intact Financial Corp. closed its acquisition of RSA Canada, as well as some of RSA’s operations outside of Canada.
“Intact does not intend to run RSA as an affiliate company forever. Intact eventually will convert RSA policies at renewal to Intact policies,” Nova Scotia Utility Review Board member Richard J. Melanson wrote in the decision approving the rate filing for Intact and Trafalgar Insurance. That ruling applies to private passenger auto in the province.
Among other things, the NSURB ruling addresses how the conversion – of RSA Nova Scotia auto policies to Intact – will proceed for private passenger vehicles. The July 28 ruling is on Intact and Trafalgar Insurance only and not on RSA.
In Nova Scotia, Intact intends to write new auto policies through RSA until Sept. 5, 2021. RSA auto policies will continue to renew through RSA up to Nov. 4, 2021. On Nov. 5, RSA policies will renew into Intact.
Company-wide, the first RSA policies that will be renewed on Intact paper will be issued in August, Intact Financial Corp. CEO Charles Brindamour said Wednesday. Brindamour was not commenting in the context of his company’s NSURB filing. He made the comment in a teleconference discussing Intact’s financial results for the latest quarter.
“We are advancing on systems conversions with the first policy renewal on Intact paper to be issued in August, allowing us to leverage our core capabilities in data, pricing and segmentation,” Brindmaour said during the earnings call, commenting in general on the integration of RSA Canada into Intact.
“A lot has happened since [Intact] closed [the RSA deal] seven weeks ago.”
In that deal, initially announced in November, 2020, Intact and Danish insurer Tryg A/S formed a consortium to acquire RSA for about £7.2 billion, with Intact paying £3.0 billion and Tryg paying £4.2 billion. The British pound closed Thursday at Cdn$1.74.
Now that the deal has closed, Intact owns RSA’s operations in Canada and what RSA called “U.K. and International,” meaning Britain, Ireland and the Middle East but not Scandinavia. Tryg now owns RSA’s operations in Sweden and Norway.
In Denmark, at the moment, Intact and Tryg own 50% each of Codan DK. On June 11, Intact announced that Alm.Brand A/S Group agreed to acquire Codan from Intact and Tryg for about Cdn$2.52 billion.
“Customers [of RSA] in Canada will start to move next week to [Intact’s] products and systems. A number of technology investment decisions have been made and are rolling,” Brindmaour said July 28 during the Q2 2021 earnings call.
RSA Canada employees “are largely onboarded with their roles, teams and locations confirmed.”
Feature image via iStock.com/kenneth-cheung