RSA issues update on NIG integration process

RSA’s Sonya Bryson has revealed the “challenges” the insurer faces as it integrates the NIG and FarmWeb brands into the business.

The insurer agreed a deal to acquire Direct Line Group’s (DLG’s) commercial lines operations in September last year.

The beginning of May marked the formal start of the two brands being integrated into RSA, with Bryson telling Insurance Times that there had been a “huge amount” of pace and activity over the integration.

Speaking during a session at the 2024 Biba Conference, the commercial lines managing director said the insurer was after a “seamless integration” as she gave an update on the process.

“We want our brokers and clients to have no signs that an integration is taking place,” she said.

“We want to deliver one set of products, one set of pricing and one proposition to all.

”While we are confident in the processes we have in place for the integrations, we must recognise that we are combining two legacy businesses together with two different IT systems, for example, so we recognise there will be challenges.

“However, at the heart of every decision we make will be how it will affect our brokers, our clients and our colleagues.”

‘No brainer’

The acquisition was agreed for an initial fee of £520m, with potential for up to a further £30m contingent on earnout provisions related to financial performance of the acquired business lines.

RSA said the acquisition would broaden its broker distribution network and expand its commercial lines product offering.

Ken Norgrove, chief executive of RSA, said the deal “was a no brainer”.

“RSA has a focus on mid-market and NIG has a portfolio focused on SME business, so we will be able to create a fully complementary portfolio,” he added.

“As a business, we have access to massive capital and we have set ourselves the target to be the stand out best commercial lines insurer in the UK by the end of next year.”