Car insurance to loans group Admiral Group is acquiring the direct home and pet insurance lines of rival RSA Insurance Group in an up to £115m deal.
On completion Admiral, which is Wales’ only FTSE 100 firm and employs more than 7,000 in South Wales, wil pay RSA £82.5m with a further potential payment of up to £32.5m depending on the number of policies successfully migrated to Admiral.
Admiral said its latest acquisition is aligned to its strategy of diversifying its product offering and building multi-product customer relationships in its core markets. It will strengthen Admiral’s home business and accelerate its direct pet proposition launched in 2022.
The transaction will see 300 RSA transferring over the Admiral, as well as the transfer of the renewal rights and RSA’s More Than brand. Policies are expected to start renewing from the third quarter 2024.
The acquisition does not include liabilities relating to existing policies, which will remain with RSA.
RSA’s direct Ƶ Home and Pet personal lines operations generated around £165m of gross written premiums in 2022.
The transaction is expected to be completed in the second quarter of 2024 and will be funded through Admiral’s existing resources and credit facilities.
Milena Mondini de Focatiis, chief executive of Admiral Group, said: "Increased scale in home and pet not only supports Admiral’s diversification strategy, but also supports our aim to provide customers with a stronger multi-product offering, choice and convenience. We look forward to welcoming our new colleagues and the additional expertise they bring.
“Our capability and culture will ensure More Than and RSA customers that join Admiral will continue to receive the high-quality cover and customer service they expect. Consistency and continuity for our new and existing customers during this migration will be our priority. With this acquisition, we continue to fulfil our purpose to help more people look after their future.”
Ken Norgrove, chief executive officer, RSA Ƶ and Ireland, commented:“This transaction aligns with our strategic ambition and I’m confident that Admiral’s shared values and track record in delivering excellence for customers makes them a perfect fit for our direct Ƶ Personal Lines business. Our primary focus now is on delivering an orderly transition that supports our colleagues and customers.”
Barclays is acting as financial adviser and Clifford Chance is acting as legal adviser to Admiral Group in connection with the transaction.
