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Intact announces equity dilution
Posted on Thursday, 10 August 2017 13:15
Canadian property and casualty insurance firm Intact Financial is raising CAD 150.00 million (USD 118.16 million) in a public offering of non-cumulative Class A series 6 preferred shares.

The firm has agreed to issue 6.00 million units at CAD 25.00 apiece.

Intact has granted the underwriters an overallotment option to acquire an additional 2.00 million Class A series 6 preferred shares, which will yield 5.3 per cent per annum and will not be redeemable prior to 30th September 2022.

Proceeds from the offering will be used to fund the previously announced acquisition of OneBeacon Insurance and for general corporate requirements.

Earlier this year, Intact Financial, via Intact Bermuda, agreed to purchase the US property, casualty, surety and liability insurance services provider for roughly USD 1.98 billion in May.

Incorporated in 2009, Intact claims to be the largest provider of home, auto and business insurance in Canada.

The business, which was formerly known as ING Canada, is listed on the Toronto Stock Exchange under the ticker symbol IFC.

Intact posted revenues of CAD 4.55 billion in the six months ended 30th June 2017, a 7.8 per cent increase on CAD 4.22 billion in the corresponding timeframe of 2016.

Net income totalled CAD 389.00 million for the first half of 2017 (H1 2016: CAD 245.00 million).

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 170 deals targeting direct property and casualty insurance carriers announced worldwide during 2017 to date, with Intact’s USD 1.98 billion purchase of OneBeacon being the largest.

This was followed by Enstar Group’s GBP 799.00 million agreement to snap up UK-based RSA Legacy in February.

State National Companies, Cover-More Group and ICICI Lombard General Insurance, among others, have also been targeted so far this year.

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