Intact Financial Corporation and its subsidiary RSA have agreed to acquire Direct Line Insurance Group plc's brokered Commercial Lines operations. The transaction includes an initial cash consideration of £520 million (C$884 million) and a potential additional £30 million (C$51 million) contingent on the financial performance of the acquired business. This acquisition transfers renewal rights, brands, employees, and systems to RSA. In 2022, Direct Line’s Commercial Lines generated £530 million in premiums with an average combined ratio of approximately 96% over two years. The transaction, subject to Direct Line’s shareholder approval, is expected to significantly strengthen Intact's UK&I business. Intact is exploring strategic options for RSA’s UK Personal lines business, including a possible sale. The financing for this acquisition will be through a C$500 million public offering of common shares, medium-term notes, and a new term loan facility. J.P. Morgan Securities plc and Skadden, Arps, Slate, Meagher & Flom LLP are serving as financial and legal advisors, respectively, to Intact Financial Corporation.