Insurer RSA Insurance Group (RSA.L) has agreed plans to sell its Italian arms of businesses Royal Sun Alliance and Sun Insurance to ITAS Mutua.
RSA will pass on insurance liabilities of £434m with their associated assets and receive a further goodwill payment of £19m. The transaction is structured as the transfer of the entire business of each branch. RSA expects to recognise a gain on sale of £28m and an addition to the Group’s tangible net assets of approximately £8m. The positive impact of the transaction on RSA’s Group IGD surplus is approximately £50m.
Completion is anticipated during the second half of 2015, subject to obtaining regulatory approval.
“This transaction continues the excellent momentum of our announced disposals in 2014 and represents further progress in tightening the strategic focus of the Group.”
RSA Italy underwrites both personal and commercial insurance risks and accounted for £221m of net written premiums and a £1m underwriting loss in RSA Group’s 2013 financial statements. At 31 December 2013, technical provisions were £434m.
Insurer RSA Insurance Group (RSA.L) has agreed plans to sell its Italian arms of businesses Royal Sun Alliance and Sun Insurance to ITAS Mutua.
RSA will pass on insurance liabilities of £434m with their associated assets and receive a further goodwill payment of £19m. The transaction is structured as the transfer of the entire business of each branch. RSA expects to recognise a gain on sale of £28m and an addition to the Group’s tangible net assets of approximately £8m. The positive impact of the transaction on RSA’s Group IGD surplus is approximately £50m.
Completion is anticipated during the second half of 2015, subject to obtaining regulatory approval.
Stephen Hester, RSA Group Chief Executive said:
“This transaction continues the excellent momentum of our announced disposals in 2014 and represents further progress in tightening the strategic focus of the Group.”
RSA Italy underwrites both personal and commercial insurance risks and accounted for £221m of net written premiums and a £1m underwriting loss in RSA Group’s 2013 financial statements. At 31 December 2013, technical provisions were £434m.
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