5th Feb 2009 14:36
RSA announces signing of an agreement to acquire the remaining 50% of its joint venture in Central & Eastern Europe
RSA Insurance Group plc announces the signing of a framework agreement with Direct Insurance Financial Investments (DIFI), to acquire DIFI's 50% holding in Intouch Insurance Group BV, a joint venture with market leading direct operations in Poland, the Czech Republic and Russia for €70m in cash.
The proposed investment is consistent with the Group's Emerging Markets' strategy to develop its direct distribution capability and its focus on motor as a core proposition.
The agreement is non binding and completion of the transaction is subject to a number of conditions including obtaining regulatory approvals.
| For further information: | ||
| Analysts | Press | |
| Shona Cotterill | Thomas Coops | |
| Tel: +44 (0) 20 7111 7212 | Tel: +44 (0) 20 7111 7047 | |
| Suzannah Seddon | Simon Kutner | |
| Tel: +44 (0) 20 7111 7140 | Tel: +44 (0) 20 7111 7327 | |
Notes to editors:
About RSAWith an almost 300 year heritage, RSA is one of the world's leading multinational quoted insurance groups. It has the capability to write business in over 130 countries and with major operations in the UK, Scandinavia, Canada, Ireland, Asia and the Middle East and Latin America. Focusing on general insurance, it has around 22,000 employees and, in 2007, its net written premiums were £5.8bn.
About DIFIDIFI was established in 1994 and is listed on the Tel Aviv Stock Exchange. It is the 9th largest insurance company in Israel and the number 1 direct motor insurer with 13% market share.
About Intouch Insurance Group BVIntouch Insurance Group BV owns direct insurance operations in Poland, the Czech Republic and Russia. For the 9 months to September 2008 Intouch Insurance Group BV reported premiums of c£50m.
Link 4 was established in Warsaw in 2003 and is the leading Direct insurer in Poland with a 60% share of the direct motor market, employing 750 people. GWP as at 30 September was c£42m (c12% growth over Q3 2007 on a constant exchange basis) with approximately 283,000 policies (c20% growth over 30 September 2007).
Direct Pojistovna, based in Prague was launched in May 2007 and employs c170 people. Reported premiums at 30 September 2008 were c£4m (573% growth over Q3 2007 on a constant exchange basis) with c28,000 policies written (530% growth over Q3 2007).
Intouch launched in Russia in April 2008.
Important DisclaimerThis press release may contain "forward-looking statements" (as defined in the US Private Securities Litigation Reform Act of 1995) with respect to certain of the Company's plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond the Company's control, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which the Company and its affiliates operate. As a result, the Company's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Company's forward-looking statements. The Company undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Nothing in this press release shall be construed as a profit forecast.
Copyright Business Wire 2009
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