This comes against a backdrop of Direct Line announcing a pre-tax loss of £76.3 million for the six months leading to June, exacerbating from an £11.1 million loss during the same period the previous year. The after-effects of the pandemic have left the firm vulnerable, with escalating car part costs and a surge in the second-hand vehicle market inflating insurer payouts.
Financial heavyweights have been instrumental in facilitating this deal. Skadden Arps Slate Meagher & Flom LLP and JP Morgan Securities PLC are providing counsel to Intact, while Direct Line leans on the expertise of Allen & Overy LLP, Morgan Stanley, RBC Capital Markets, and Goldman Sachs.
