27th Nov 2006 09:28
\* T Royal & SunAlliance announces plans to enter into a Joint Venture to access Eastern European Markets & Russia\* T Royal & Sun Alliance Insurance Group plc (R&SA) announces the signing of aframework agreement with Direct Insurance Financial Investments (DIFI), to forma Joint Venture to access markets in Eastern Europe and Russia. The JointVenture will own Link4, the market leading direct insurance operation in Poland,and has plans to replicate this successful business model in the Czech Republicand Russia. The proposed investment is consistent with the Group's emergingmarkets' strategy and will accelerate delivery of a direct personal linesproposition in the region. The agreement is non binding and subject to confirmatory due diligence by R&SA.On satisfactory completion of this review, R&SA will pay £44m in cash for a 50%shareholding in and joint control of the Joint Venture. Going forward, Royal &SunAlliance will invest a further £44m to fund future growth of the venture,matching DIFI's current investment. Paul Whittaker, Emerging Markets CEO commented, "This is an exciting opportunityto invest in the number 1 direct insurer in the Polish market and a strong basefrom which to export this successful model into other attractive markets. I lookforward to combining the Group's technical excellence with DIFI's track recordof quickly establishing and building leading positions in new markets." For further information: \* TAnalysts Press-------------------------------------------------------------------Helen Pickford / Shona Cotterill Phil Wilson-Brown-------------------------------------------------------------------Tel: +44 (0) 20 7111 7212 / 7107 Tel: +44 (0) 20 7111 7047-------------------------------------------------------------------Andrew Wigg Simon Moyse (Finsbury)-------------------------------------------------------------------Tel: +44 (0) 20 7111 7138 Tel: +44 (0) 20 7251 3801-------------------------------------------------------------------\* T Notes to editors: DIFI was established in 1994 and is listed on the Tel Aviv Stock Exchange. It isthe 9th largest insurance company in Israel, and the number 1 direct motorinsurer with 13% market share. Important Disclaimer This press release contains forward looking statements as defined in the U.S.Private Securities Litigation Reform Act of 1995. The forward looking statementsare based on management's current expectations or beliefs as well as a number ofassumptions about future events, and are subject to factors and uncertaintiesthat could cause actual results to differ materially from those described in theforward looking statements. The agreement is subject to the execution ofdefinitive documents by the parties. The Company does not assume any obligationto update any forward looking statements, whether as a result of newinformation, future events or otherwise. Copyright Business Wire 2006Related Shares:
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