17th Oct 2007 16:00
\* T Royal & SunAlliance to acquire Canadian Northern Shield\* T Royal & Sun Alliance Insurance Group plc (R&SA) announces an agreement toacquire Canadian Northern Shield Insurance Company (CNS) for approximately C$75m(£37m) payable in cash. The transaction is subject to regulatory approvals. CNS is a leading P&C insurer in British Columbia, with strong positions inproperty, liability and private auto. In 2006 it delivered gross writtenpremiums of C$164m (£78m). The acquisition will make R&SA the market leader inBritish Columbia and the sixth largest general insurer in Canada and isconsistent with R&SA's strategy of building leading positions in targetedsegments and geographies. Simon Lee, Chief Executive of Royal & SunAlliance International Businesses said,"We already have an excellent business in Canada and this transaction willsignificantly strengthen our position. It brings a greater balance to ourexisting book with a high proportion of CNS's business in personal property andcommercial lines. It also provides a more balanced geographic spread and makesus the largest general insurer in the attractive British Columbia market. The combination of our technical excellence and CNS's additional distributionand product capability will enhance our platform for delivering profitablegrowth." A presentation on R&SA's Canadian business for analysts and investors will takeplace in London on Wednesday 7 November hosted by Simon Lee, CEO of R&SA'sInternational Businesses and Rowan Saunders, CEO of R&SA Canada. For further information: \* TAnalysts Press------------------------------- -----------------------------------Shona Cotterill Thomas Coops / Sarah Hilyer------------------------------- -----------------------------------Tel: +44 (0) 20 7111 7212 Tel: +44 (0) 20 7111 7047/7327------------------------------- -----------------------------------Wendy Hardy Simon Moyse (Finsbury)------------------------------- -----------------------------------Tel: +44 (0) 20 7111 7140 Tel: +44 (0) 20 7251 3801------------------------------- -----------------------------------\* T Notes to editors: 1. Gross written premiums are converted at an exchange rate of £1/C$2.09, whichwas the average rate for 2006. 2. Royal & SunAlliance Canada is part of Royal & Sun Alliance Insurance Groupplc and includes Roins Financial Services Limited, Royal & Sun AllianceInsurance Company of Canada, Quebec Assurance Company, Johnson Inc., WesternAssurance Company, Ascentus Insurance Ltd. Royal & SunAlliance Canada employsapproximately 2,500 people and is represented by a large network of insurancebrokers across the country. In 2006, the Canadian Group wrote C$1.5 billion (£701m) in gross premiums. 3. The consideration is subject to a closing adjustment to reflect net assets atcompletion, including a reduction for any pre closing dividends. 4. The consideration assumes an exchange rate of £1/C$2.03, which was the rateat 30 September 2007. Important Disclaimer This press release contains forward looking statements as defined in the U.S.Private Securities Litigation Reform Act of 1995. The forward looking statementsare based on management's current expectations or beliefs as well as a number ofassumptions about future events, and are subject to factors and uncertaintiesthat could cause actual results to differ materially from those described in theforward looking statements. The agreement is subject to the execution ofdefinitive documents by the parties. The Company does not assume any obligationto update any forward looking statements, whether as a result of newinformation, future events or otherwise. Copyright Business Wire 2007Related Shares:
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