Topic: How To Invest

Power Growth Investor Hotline – Friday, November 13, 2020

Article Excerpt

INTACT FINANCIAL CORP., $146.49, is a buy. The stock (symbol IFC on Toronto) provides investors exposure to Canada’s largest provider of property and casualty insurance. Intact insures more than five million individuals and businesses. Its major brands are Intact Insurance, Canada BrokerLink and belairdirect. To add value for investors, the company—in conjunction with Danish insurer Tryg A/S—has made a $9.3 billion U.S. takeover bid for U.K.-based RSA Insurance Group plc. RSA states that it’s in talks with the consortium and has indicated it would likely recommend the potential offer. RSA offers a range of general and specialty insurance products and has long been viewed as a possible takeover target. If a deal goes through, Intact take RSA’s Canadian business as well as its U.K. and international division. Tryg plans to keep RSA’s operations in Sweden and Norway, while RSA’s Denmark business would be jointly owned by the two firms. Growth by acquisition adds risk, especially with a string of deals as big as RSA…

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