Royal & Sun Alliance has sold off its UK Healthcare & Assistance business to newly created company Oxfordway, in a deal which will release £247m in capital.
The sell-off is being undertaken via a management buy out (MBO) and will see all 1,200 employees transferring to Oxfordway. R&SA said the deal should be completed by the end of this month.
Tim Ablett has quit his post as managing director of Groupama Insurances to head up the new company.
An R&SA statement said it will continue to underwrite business transacted by the new company for up to 18 months after the MBO is completed.
Royal & SunAlliance UK chief executive Duncan Boyle said: "The November 2002 Operating and Financial Review identified a number of specific areas of business that the group would be withdrawing from.
"The disposal of the healthcare and assistance business allows Royal & SunAlliance to unlock significant value from the sale of a specialist business that is not strategic to the group. Capital and resources will be refocused on the growth of other profitable areas of our core general insurance business."
Oxfordway will sell private medical insurance and personal accident insurance.
