NR 09:07 AM EDT, 03/28/2023 (MT Newswires) -- Intact Financial Corporation (IFC.TO) and its subsidiary RSA, are exting the UK personal lines motor market. The personal lines motor market, represents approximately 120 million pounds of annual premium for the company.
Intact said the personal lines motor market in the UK remains "extremely competitive and requires significant scale to drive meaningful outperformance." The exit includes an agreement to introduce MORE THAN direct motor customers to Swinton Insurance, a brand of Atlanta Insurance Intermediaries Limited (Swinton) and part of Ardonagh Retail, upon renewal.
In 2023, Intact expects the combined ratio of the continuing UK&I business to be in the mid-90s. Restructuring costs of 35 million pounds are expected in Q1 2023, mostly related to a one-time write-off of intangibles, it added.
"When we completed the acquisition of RSA, we were clear that we would take necessary actions to drive sustainable outperformance in UK&I," said Charles Brindamour, CEO. "Today's announcement represents a further step in delivering against our strategic roadmap to optimize our footprint around personal lines Home and Pet, and our Commercial and Speciality lines businesses."