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07 May, 2021 13:41

Peel Hunt downgrades RSA Insurance as takeover nears completion

Peel Hunt downgraded RSA Insurance on Friday to ‘hold’ from ‘buy’ but lifted the price target to 685p, which is the price it has agreed to be bought at by Intact Financial Corporation and Danish insurer Tryg.

The broker noted that RSA's takeover by the Intact-Tryg consortium is nearing completion, with all regulatory approvals now having been received.

Peel Hunt said the offer price is an attractive 18% premium to its 580p fair value estimate.

"We believe the consortium is buying RSA at an interesting inflection point for the Commercial lines business, as per the 1Q results, together with a healthy capital base.

"Intact’s plans for RSA’s UK Retail activities will be interesting to follow."


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Important Legal Notice about News Sources

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.