RSA announces sale of its business in China for £71m
RSA Insurance Group plc today announces that on 3 July 2014 it reached agreement to sell Sun Alliance Insurance (China) Limited (‘RSA China’) to Swiss Re Corporate Solutions.
RSA will receive consideration of approximately £71m payable in cash. The transaction is expected to result in a gain on sale and an addition to the Group’s tangible net assets of approximately £26m.
Completion is subject to obtaining regulatory approval.
Stephen Hester, RSA Group Chief Executive said:
“This transaction builds on the momentum of our recently announced disposals in the Baltics, Poland and Canada, and represents continued progress against our aim of tightening the strategic focus of the Group. We are continuing to evaluate further non-core disposals, some of which we expect to agree during 2014.”
RSA China underwrites both commercial and personal insurance risks and accounted for £14m of net written premiums in RSA Group’s 2013 financial statements.
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|Rupert Taylor Rea||Louise Shield|
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|Louise Jordan||Jon Sellors|
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Notes to editors:
With a 300 year heritage, RSA is one of the world’s leading multinational quoted insurance groups. RSA has major operations in the UK, Scandinavia, Canada, Ireland, Asia and the Middle East, Latin America and Central and Eastern Europe and has the capability to write business in around 140 countries. Focusing on general insurance, RSA has around 23,000 employees and, in 2013, its net written premiums were £8.7 billion.
This press release may contain ‘forward-looking statements’ with respect to certain of the Group’s plans and its current goals and expectations relating to its future financial condition, performance results, strategic initiatives and objectives. Generally, words such as “may”, “could”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “aim”, “outlook”, “believe”, “plan”, “seek”, “continue” or similar expressions identify forward-looking statements. These forward-looking statements are not guarantees of future performance. By their nature, all forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to future events and circumstances which are beyond the Group’s control, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation or regulations in the jurisdictions in which the Group and its affiliates operate. As a result, the Group’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Group’s forward-looking statements. Forward-looking statements in this press release are current only as of the date on which such statements are made. The Group undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Nothing in this press release shall be construed as a profit forecast.