- Intact Financial Corporation and Tryg A/S have proposed a £7.2bn offer to acquire RSA Insurance in what they believe would be a 'strategically compelling' merger, according to a statement from the three companies.

Intact would pay £3.0 billion and Tryg would pay £4.2 billion, and the proposal would also include payment by RSA of the announced interim dividend of 8p per share. Intact would retain RSA's Canada and UK & International operations and obligations while Tryg would retain RSA's Sweden and Norway operations, and Intact and Tryg would co-own RSA's Denmark operations.

Intact would expand its position in the competitive Canadian P&C industry where operational excellence is imperative for outperformance, said the statement. It would also provide Tryg a unique opportunity to strengthen its position in Swedish and Norwegian P&C, 'creating the largest listed P&C insurer in Scandinavia with gross premiums earned of approximately DKK 31 billion and total assets of approximately DKK 99 billion'.

The proposal must have the support of RSA's pension fund trustees as well as board approvals from all three companies.

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