17th Oct 2014 10:30
RSA announces sale of its business in Italy
RSA Insurance Group plc today announces that on 17 October 2014 it reached agreement to sell the entire business of the Italian branches of Royal & Sun Alliance Insurance plc and the Sun Insurance Office Limited (together ‘RSA Italy’) to ITAS Mutua.
RSA will pass on insurance liabilities of £434m with their associated assets and receive a further goodwill payment of £19m. The transaction is structured as the transfer of the entire business of each branch. RSA expects to recognise a gain on sale of £28m and an addition to the Group’s tangible net assets of approximately £8m. The positive impact of the transaction on RSA’s Group IGD surplus is approximately £50m.
Completion is anticipated during the second half of 2015, subject to obtaining regulatory approval.
Stephen Hester, RSA Group Chief Executive said: “This transaction continues the excellent momentum of our announced disposals in 2014 and represents further progress in tightening the strategic focus of the Group.”
RSA Italy underwrites both personal and commercial insurance risks and accounted for £221m of net written premiums and a £1m underwriting loss in RSA Group’s 2013 financial statements. At 31 December 2013, technical provisions were £434m.
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Enquiries:
| Analysts | Press | ||
| Matt Hotson | Louise Shield | ||
| Tel: +44 (0) 20 7111 7212 | Tel: +44 (0) 20 7111 7047 | ||
| Rupert Taylor Rea | Jon Sellors | ||
| Tel: +44 (0) 20 7111 7140 | Tel: +44 (0) 20 7111 7327 |
Notes to editors:
Financial Advisors
Lazard acted as Sole Financial Advisor to RSA Group
About RSA
With a 300 year heritage, RSA is one of the world’s leading multinational quoted insurance groups. RSA has core operations in the UK, Scandinavia, Canada, Ireland and Latin America. Focusing on general insurance, RSA has around 23,000 employees and, in 2013, its net written premiums were £8.7 billion.
About ITAS
Headquartered in Trento, Italy and founded in 1821, ITAS is the oldest mutual insurance company in Italy. Providing over 1.2 million policies to almost 700,000 insured members, ITAS is represented by over 250 agents and has 446 direct employees.
Important Disclaimer
This press release may contain ‘forward-looking statements’ with respect to certain of the Group’s plans and its current goals and expectations relating to its future financial condition, performance results, strategic initiatives and objectives. Generally, words such as “may”, “could”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “aim”, “outlook”, “believe”, “plan”, “seek”, “continue” or similar expressions identify forward-looking statements. These forward-looking statements are not guarantees of future performance. By their nature, all forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to future events and circumstances which are beyond the Group’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 or regulations in the jurisdictions in which the Group and its affiliates operate. As a result, the Group’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Group’s forward-looking statements. Forward-looking statements in this press release are current only as of the date on which such statements are made. The Group 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 2014
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