Intact Financial Exits U.K. Personal Lines Motor Market

By Adriano Marchese

Intact Financial Corp. said Tuesday that it would pay about 35 million pounds ($43 million) in restructuring costs as part of its plan to exit the U.K. personal lines motor market.

The Canadian property and casualty insurance said the decision to leave the personal lines motor market came after a review with its subsidiary RSA Insurance Group Ltd. where it determined that it would require significant scale to drive outperformance in the competitive space.

The personal lines motor market represents about GBP120 of annual premium for the company, it said.

Intact said restructuring costs would be about GBP35 million in the first quarter of 2023, most related to a one-time write-off of intangibles, and then expects to release about GBP60 million of capital held against motor-related insurance risk over time as the portfolio runs off.

"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," Chief Executive of RSA UK & International Ken Norgrove said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

March 28, 2023 09:00 ET (13:00 GMT)

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