Sale is expected to add £95m to RSA’s tangible assets

RSA has sold its insurance businesses in Singapore and Hong Kong to Allied World for £130m.

The sale is expected to net RSA a £110m profit and add £95m to its tangible net assets.

RSA Singapore and RSA Hong Kong underwrite a balanced mix of commercial specialty and retail both business.

RSA announced in February that it would look to sell parts of its business deemed non-core under a plan to strengthen its capital base.

In May it sold Canadian broker Noraxis to Arthur J Gallagher for £273m, and in April it sold Baltic and Polish operations to Polish insurer PZU for £300m.

Both deals are expected to be complete in the first half of 2015, subject to regulatory approval.

RSA Group chief executive Stephen Hester said: “This transaction builds further on the momentum of our recently announced disposals in the Baltics, Poland, Canada (Noraxis) and China, and represents continued progress against our aim of tightening the strategic focus of the group.”

The insurer will look at more disposals over the next 12-18 months.

Topics