Royal & SunAlliance (R&SA) has sold its US surplus lines operation, Royal Specialty Underwriting (RSUI), to US insurer Alleghany Insurance Holdings for £72m.
The firm said in a statement that the sale of RSUI was expected to be completed during July and would release around £198m of capital.
Profits for the first half of the year from RSUI will be retained by the R&SA group. The operating profit of RSUI for the first quarter of 2003 was around £51m.
RSUI operates as a managing general agency, underwriting specialty insurance cover on behalf of some R&SA insurance carriers.
R&SA group chief executive Andy Haste said: "This transaction significantly reduces the volatility and catastrophe exposure of our US business and is an important part of our capital release programme.
"Taken in combination with the recent IPO of the Australian and New Zealand businesses and sale of our UK healthcare & assistance business, it means that our risk based capital position has substantially improved.
"280 existing RSUI staff will be transferred to Alleghany. We believe that they will welcome the opportunity to continue working with the existing management team and the new owner, who is committed to the development of the business."
