Intact Financial Corporation Announces All Regulatory Approvals Obtained for Acquisition of OneBeacon Insurance Group, Ltd.
Intact Financial Corporation (TSX: IFC) today announced that all regulatory approvals required to complete the previously announced proposed acquisition (Acquisition) of OneBeacon Insurance Group, Ltd. (NYSE: OB) (OneBeacon) have been obtained. The Acquisition is expected to close on or about September 28, 2017(Acquisition closing date). IFC will acquire OneBeacon for US$18.10 per OneBeacon common share in cash, resulting in an aggregate purchase price of approximately US$1.7 billion. Upon completion of the Acquisition, OneBeacon will be an indirect wholly-owned subsidiary of IFC and will continue to operate as OneBeacon Insurance Group, Ltd. in the United States.
Information for Holders of Subscription Receipts
IFC expects that, effective the Acquisition closing date, the subscription receipts issued by IFC on May 11, 2017(Subscription Receipts) to fund a portion of the purchase price for OneBeacon will automatically be exchanged for IFC common shares in accordance with the terms of the subscription receipt agreement.
IFC expects that trading in the Subscription Receipts will be halted on the Toronto Stock Exchange (TSX) prior to market opening on the Acquisition closing date, that the transfer register maintained by the subscription receipt agent will be closed and that the Subscription Receipts will be delisted by the TSX after close of trading on the Acquisition closing date. The common shares to be issued on the exchange of the Subscription Receipts are expected to begin trading on the TSX on the Acquisition closing date.
Holders of Subscription Receipts as of September 15, 2017 will be entitled to receive a dividend equivalent payment on September 29, 2017 of $0.64 per Subscription Receipt that they held on September 15, 2017.
About Intact Financial Corporation
Intact Financial Corporation (TSX: IFC) is the largest provider of property and casualty (P&C) insurance in Canada with over $8.0 billion in annual premiums. Supported by over 12,000 employees, the Company insures more than five million individuals and businesses through its insurance subsidiaries and is the largest private sector provider of P&C insurance in British Columbia, Alberta, Ontario, Québec, Nova Scotia and Newfoundland & Labrador. The Company distributes insurance under the Intact Insurance brand through a wide network of brokers, including its wholly owned subsidiary, BrokerLink, and directly to consumers through belairdirect.
About OneBeacon Insurance Group
OneBeacon Insurance Group, Ltd. is a Bermuda-domiciled holding company that is currently publicly traded on the New York Stock Exchange under the symbol “OB.” OneBeacon’s underwriting companies offer a range of specialty insurance products sold through independent agencies, regional and national brokers, wholesalers and managing general agencies. Each business is managed by an experienced team of specialty insurance professionals focused on a specific customer group or industry segment, and providing distinct products and tailored coverages and services. OneBeacon’s solutions target group accident and health; architects and engineers; commercial surety; entertainment; environmental; excess property; financial institutions; financial services; healthcare; management liability; ocean and inland marine; public entities; technology; and tuition refund. For further information about OneBeacon products and services visit: Onebeacon.com and to remain up to date on OneBeacon news, follow OneBeacon on Twitter @OneBeaconIns or visit OneBeacon’s online newsroom: www.onebeacon.com/newsroom.
The Company uses both International Financial Reporting Standards (IFRS) and certain non-IFRS measures to assess performance. Non-IFRS measures do not have any standardized meaning prescribed by IFRS and are unlikely to be comparable to any similar measures presented by other companies. See section 23 of Management’s Discussion and Analysis for the year ended December 31, 2016 for the definition and reconciliation to the most comparable IFRS measure. Management analyzes performance based on underwriting ratios such as combined, expense, loss and claims ratios, MCT, and debt-to-capital, as well as other non-IFRS financial measures, namely DPW, Underlying current year loss ratio, Underwriting income, NOI, NOIPS, OROE, ROE, AROE, Non-operating results, AEPS, Cash flow available for investment activities, and Market-based yield. Additional information about the Company, including the Annual Information Form, may be found online on SEDAR at www.sedar.com.
SOURCE Intact Financial Corporation