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Oct
06
RSA Acquires GCAN from Ontario Teachers
Posted on Oct 06, 2010 by Sergio Ulloa (G+)
RSA, the parent company of Royal & Sun Alliance, has recently acquired GCAN Insurance from the Ontario Teachers' Pension Plan Board in a cash deal worth US$420 million (EUR 303 million). With this acquisition, RSA effectively expands its foothold in the Canadian commercial insurance sector. The deal to sell GCAN Insurance to RSA was arranged on behalf of the Ontario Teachers' Pension Plan (OTPP) through its private investment department, Teachers' Private Capital, which is one of the largest private equity investors in the world. In 2009, GCAN generated US$255 million (EUR 184 million) in premiums generated through the sale of commercial insurance to mid- and large-sized companies. GCAN had been in OTPP's portfolio since 2005. RSA Canada will become the fourth-largest general insurance company in the country, and they plan to continue growing through internal expansion and further acquisitions. RSA Canada employs 3,400 people and is part of UK-based RSA Insurance Group Plc, which in turn employs around 21,000 people worldwide. The range of products currently offered by RSA Canada will be enhanced by the technical expertise and geographic diversification in GCAN's repertoire, including specialty liability insurance to corporate officers and general insurance for the flotilla of vehicles belonging to Canadian companies. This deal is still subject to approval from the Canadian regulatory authorities. Companies mentioned: RSA
RSA has a proud heritage dating back almost 300 years. The current company structure was created in 1996 following the merger of two of the largest insurance companies in the UK, Royal Insurance and Sun Alliance. In 2008 the company shortened their name to RSA and simplified and refreshed their corporate brand. RSA has over 20 million customers worldwide. The Group currently manages GBP 14.3 billion of investments. RSA is a member of the FTSE4Good Index.
GCAN
GCAN is a leading Canadian mid-market, large risks and specialty commercial insurer, offering a range of products including property, liability and auto with a balanced portfolio by line of business and geography. GCAN has a strong track record of profitability with a combined operating ratio (COR) of 81.4% in 2009 and an average COR over the last five years of 77%. With annual premiums of approximately $255 million in 2009, the company employs 148 people in four locations across Canada, and partners with a network of 130 brokers.
Teachers' Private Capital
Teachers' Private Capital is one of the world's largest private equity investors. It is the private investment department of the Ontario Teachers' Pension Plan. With $96.4 billion in assets as of December 31, 2009, the Ontario Teachers' Pension Plan is the largest single-profession pension plan in Canada. It is an independent corporation responsible for investing the fund and administering the pensions of Ontario's 289,000 active and retired teachers.