Accelerating our strategy to build a leading Commercial Lines business

At RSA we’ve an ambition to grow our Commercial Lines business in the UK – sustainably and profitably – to meet the needs of our brokers and clients, offering a broad product suite and great service.?

We’ve long believed that Commercial Lines represents a huge opportunity for our business and that, if we continue to deliver on the strategy we have in place, we’ll be able to make the most of that.?

To get there, for several years now, we’ve spent time listening to UK brokers and out of those conversations built a strategy for our Commercial Lines business that focuses on making improvements to three key areas: distribution, service and proposition.?

The delivery of that strategy has seen us work hard to broaden our distribution and partner networks with more brokers, implement a service mechanism that has the customer at its centre, and improve connections between online and offline trading to build a Commercial Lines business fit for the future.?

The exciting news that we’ve agreed to acquire Direct Line Insurance Group’s (DLG)?NIG, FarmWeb and Churchill Expert SME brands – subject to shareholder approval – will significantly accelerate our ambitions to outperform our peers in Commercial Lines.?

On completion, I believe the deal will be transformational for RSA’s business and send an important message to the market.??

DLG has a long and distinguished history in the Commercial Lines marketplace, and a well-earned reputation for stellar broker service. In NIG, FarmWeb and Churchill Expert SME, it has also built up some tremendously respected and recognisable brands.?

Completion of the transaction would make RSA the third-largest player in the UK Commercial Lines market, showing that we mean business and are committed to Commercial Lines for the long term.??

It underlines the confidence that our parent company, Intact, has in our strategy and the extent to which it believes in, and will support, our goal to sustainably grow in the UK Commercial Lines space. It will be the first acquisition of its size that RSA has made in more than a decade.?

The deal also makes complete sense, because the two businesses really complement one another.??

Notably, the deal will broaden our product offering. Together, NIG, FarmWeb and Churchill Expert SME comprise more than 12 product lines, from motor fleet to liability coverage for farms to white-labelled landlord policies.??

We really like what DLG’s brokered Commercial Lines business has built over the years, and we will continue to write similar business going forward. This greater product breadth, together with an increase in broker relationships, will enhance the growth profile of our business.??

DLG also has well-established broker relationships and a strong regional presence. It also has leading online trading capabilities, with about 79% of its commercial line policies traded online. These are capabilities that will complement our existing operations and turbo-boost our distribution strategy.?

The acquisition will also strengthen our position in the SME and mid-market segment of the UK, allowing us to reach more clients and improving the risk profile of our UK & Ireland business overall.??

In short, this transaction will give us greater scale, enhanced regional presence, and access to new capabilities, expertise and knowledge. It makes sense for our brokers, for our customers and for our business.?

I’m incredibly excited for this next phase of our journey to build a leading Commercial Lines business and solidify our position in the premier league of Commercial Lines insurers in the UK.??

Lee Mooney, Managing Director - Commercial Lines