Royal & SunAlliance Insurance Group plc (R&SA) has announced that sale of its offshore life assurance and investment subsidiary to Friends Provident, as part of its ongoing programme of disposals to release capital for reinvestment in the group's core general business operations.
The sale of the Isle of Man-based operation, Royal & Sun Alliance International Financial Services Limited (RSAIFS), includes Royal & Sun Alliance Investment Management Luxembourg SA.
The sum of £133m will be paid in cash on completion and will be subject to a completion accounting adjustment.
As at 31 December 2001, the embedded value of RSAIFS, adjusted for a dividend payment of £7m, was £106.6m (UK GAAP) and profit after tax for the year was £8.1m.
The share capital and reserves of Royal & Sun Alliance Investment Management Luxembourg SA at that date was £0.2m (UK GAAP), with profit after tax being nil.
R&SA group chief executive Bob Mendelsohn said: "Royal & Sun Alliance International Financial Services has been a successful business venture for the group over the years, but given our increasing focus on general insurance we believe the time is right for ownership to pass to a company which has the required life and investment focus.
"I am delighted that Friends Provident is the buyer and am confident that the company will have an exciting future under its new shareholder."
The transaction is subject to conditions including standard regulatory approvals.
