RSA employee representatives seek 'urgent clarification' on potential job losses

Employee representatives of RSA Insurance Group PLC's European Works Council are seeking "urgent clarification" over the potential impact on its workforce from the planned £7.2 billion takeover of the U.K.-based insurer by Intact Financial Corp. and Tryg A/S.

In an opinion published on RSA's website Jan. 14, the EWC said that while it "tentatively gives a positive opinion of the takeover," there is "significant uncertainty" over the deal's effect on RSA's workforce in the short, medium and long term.

The council asked for more information on six areas, including 200 possible job losses in the U.K., 435 possible layoffs in Sweden and Norway, and the opportunity to mitigate these losses. It also seeks information on the future of the joint venture in Denmark, saying Intact had "explicitly advised that the Danish market is not in line with [its] long-term strategy." Under the takeover, Intact and Tryg will co-own RSA's Danish business.

In addition, the EWC called on RSA's management to commit to an "open and transparent dialogue" during the transition period and to arrange a meeting with the insurer's new owners "as soon as practicable," to ensure meaningful engagement.

The takeover is expected to be completed during the second quarter of 2021.