Canadian insurer Intact Financial Corp. struck a deal with three of the country’s largest pension funds for $3.2 billion in financing to back a takeover of RSA Insurance Group Plc.

Intact and Danish insurer Tryg A/S have joined forces to make a 7.2 billion-pound (US$9.5 billion) takeover proposal for RSA. It would be the biggest acquisition of a U.K.-listed company this year.

Toronto-based Intact said Thursday it has received a commitment from Caisse de dépôt et placement du Québec for $1.5 billion, while the Canada Pension Plan Investment Board would provide $1.2 billion and the Ontario Teachers’ Pension Plan $500 million.

The investment comes in the form of subscription receipts at $134.50 each and is conditional on a firm deal for RSA. That’s a slight discount to Intact’s closing share price of $135.90 on Wednesday.

Intact has been one of Canada’s standout financial stocks, rising about 53 per cent over the past five years. That makes it the sixth-best performer among 26 companies in the S&P/TSX Financials Index over that time period, according to data compiled by Bloomberg.

The pension funds will receive one share of Intact per receipt, as well as a commitment fee upon closing of the acquisition. The funds’ interest in supporting the deal was first reported by the Globe and Mail newspaper.

RSA is set to be broken up under the plan, with Intact keeping its Canadian and U.K. and international operations. Tryg would take the Swedish and Norwegian operations, which will help make it Scandinavia’s biggest listed property and casualty insurer. RSA’s Danish business would be jointly owned by the two firms.

The deal is a boon for RSA’s key shareholder: Cevian Capital, one of Europe’s most prominent activist investors, holds about 14 per cent and is the company’s biggest investor after initially buying a stake in 2014. The firm invested the same year Stephen Hester took over as chief executive of RSA, joining from the Royal Bank of Scotland Group Plc, now known as Natwest Group Plc.