RSA offloads its Latin American arm at £403 million before Zurich dealComments Off on RSA offloads its Latin American arm at £403 million before Zurich deal
RSA has sold off another large chunk of its overseas arm ahead of its impending takeover by its Swiss rival Zurich for £5.6 billion.
It is selling its Latin American insurance arm to Colombia’s GrupoSura for £403 million in cash.
Zurich had been told about the sell-off when the two sides negotiated takeover terms and the sale will not affect the deal.
Stephen Hester, chief executive of RSA, said: “At £403 million this sale is expected to be strongly accretive to capital for RSA, enhancing operational flexibility.
“This is the largest remaining disposal we have under way and is consistent with our stated target to substantially complete RSA’s strategic refocus by the 2015 year-end results announcement.”
RSA Latin America is one of the top ten insurers in the region with operations in Chile, Argentina, Brazil, Mexico, Colombia and Uruguay.
Meanwhile, mutual insurer LV= today reported a 4% rise in first-half profits to £49 million driven by a sharp rise in retirement products.
The insurer, which sponsors the cricket County Championship, said its excess capital grew to £714 million compared with 2014 year-end of £689 million, which left it well on target to meet next year’s Solvency II capital requirements.