Admiral Group PLC has agreed to buy the More Than personal home and pet cover business from RSA Insurance in a deal worth up to £115 million.
Car insurer Admiral will buy the UK personal insurance operations and More Than brand from RSA for £82.5 million upfront and a further potential £32.5 million depending on how many policies ultimately transfer over.
Around 300 RSA staff will transfer to Admiral as part of the deal, which will see the group take on the renewal rights to about £165 million of annual premiums.
Cardiff-headquartered Admiral said it plans to only retain the More Than brand for pet insurance.
The move will see RSA – which is owned by Canadian firm Intact – complete its exit from the personal insurance market under previously announced aims to focus solely on commercial cover.
The deal is expected to complete at the end of the first quarter next year, with policies set to start renewing with Admiral from the third quarter.
Milena Mondini de Focatiis, chief executive at 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.’
‘Consistency and continuity for our new and existing customers during this migration will be our priority,’ she added.
RSA said it is also looking at options to transfer to other parties its home and pet partner and broker contracts, which will otherwise expire over the next two to three years.
Ken Norgrove, chief executive of RSA UK&I, said: ‘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 UK personal lines business.’
source: PA
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