Insurer reluctant to break up its composite model

Aviva has rejected a £5bn bid from rival insurer RSA for its general insurance arm, Sky News reports.

Aviva declined to comment, while a spokesman for RSA said he had no information to provide yet.

According to the Sky News report, Aviva immediately rejected the bid because it believes its composite model, which combines, general insurance, life insurance and asset management, is the correct strategy.

The proposal included Aviva’s UK general insurance arm and its operations in other markets, including Canada and Ireland.

The report said the offer was made in a letter sent by RSA’s chairman, John Napier, to his opposite number at Aviva, Lord Sharman, within the last few weeks.

Aviva's share price jumps - click here.