28th Jul 2010 10:15
Acquisition
RSA acquires 123.ie in Ireland
RSA Insurance Group plc (RSA) announces the acquisition of 123 Money Limited (123.ie), one of the leading and fastest growing direct distributors of personal lines insurance products in Ireland.123.ie offers Motor, Home and Pet insurance and, with around 170,000 policyholders, generated premium income of about EUR 60m (GBP 50m) in the year ended 31 March 2010. Following this transaction RSA will become the second largest general insurer in Ireland.
123.ie has gross assets of around EUR 20m (GBP 17m) and on completion, consideration of EUR 65m (GBP 54m) after retentions is payable in cash with a further deferred element linked to future performance targets.
Simon Lee, CEO of International, commented, "The acquisition of 123.ie complements our existing intermediated distribution capability by giving us a leading direct presence and will make RSA the number two general insurer in Ireland. We are excited about the growth prospects created by combining 123.ie's strong brand with RSA's financial strength and recognised technical expertise."
Completion of the transaction is subject to regulatory approval.
-ENDS
For further information:
| Analysts | Press | |
| Claire Cordell | Louise Shield | |
| Tel: +44 (0) 20 7111 7212 | Tel: +44 (0) 20 7111 7047 | |
| Suzannah Oliver | Simon Kutner | |
| Tel: +44 (0) 20 7111 7140 | Tel: +44 (0) 20 7111 7327 |
Notes to editors:
About RSA
With a 300 year heritage, RSA is one of the world's leading multinational quoted insurance groups. It has the capability to write business in over 130 countries and major operations in the UK, Scandinavia, Canada, Ireland, Asia and the Middle East, Latin America and Central and Eastern Europe. Focusing on general insurance, it has around 23,000 employees and, in 2009, its net written premiums were £6.7bn.
About RSA Ireland
RSA is a leading general insurer in the Irish market with net written premiums of around £300m in 2009 and over 400,000 customers. It provides an extensive range of general insurance products including Property, Liability, Home, Motor, Annual Travel and Special Commercial Insurances, with an emphasis on delivering effective risk management and claims services to customers. It has around 550 employees and predominantly distributes products through a nation-wide network of professional insurance brokers.
About 123.ie
123.ie is a leading Direct Personal Lines insurance intermediary in Ireland. It operates through the web and its own call centre and offers a range of non-life products including Motor, Home, Pet and Travel insurance. Established in 2002, it is a well known brand in the Irish market with approximately 170,000 policyholders and premium income to the year ended 31 March 2010 of around EUR 60m (GBP 50m). The majority of the business is currently underwritten by Travelers Insurance Company Ltd and following the transaction RSA Ireland will become the sole underwriter.
The consideration and 123.ie's premium income were converted using the exchange rate of GBP 1: EUR 1.2
Important Disclaimer
This press release may contain 'forward-looking statements' with respect to certain of the Group's plans and its current goals and expectations relating to its future financial condition, performance results, strategic initiatives and objectives. Generally, words such as "may", "could", "will", "expect", "intend", "estimate", "anticipate", "aim", "outlook", "believe", "plan", "seek", "continue" or similar expressions identify forward-looking statements. These forward-looking statements are not guarantees of future performance. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond the Group's control, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which the Group and its affiliates operate. As a result, the Group's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Group's forward-looking statements. Forward-looking statements in this press release are current only as of the date on which such statements are made. The Group undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Nothing in this press release shall be construed as a profit forecast.
Copyright Business Wire 2010
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