RSA: RSA Insurance Group Plc: Disposal
UK Regulatory Announcement
RSA announces £130m sale of operations in Singapore and Hong Kong
RSA Insurance Group plc announces that today it has reached an agreement,
subject to regulatory approvals, to sell the insurance business of each of its
branches in Singapore (RSA Singapore) and Hong Kong (RSA Hong Kong) to Allied
World Assurance Company, Ltd (Allied World).
Assuming each transaction completes (and subject to the adjustments described
below), RSA will receive aggregate consideration of approximately £130m
payable in cash. The transactions are expected to result in a gain on sale of
approximately £110m and an addition to the Group’s tangible net assets of
approximately £95m, further improving the Group’s capital strength.
Subject to obtaining relevant regulatory approvals in the respective
countries, each transaction is expected to complete during the first half of
Stephen Hester, RSA Group Chief Executive 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. Further disposals are targeted over the next 12-18 months to complete
RSA Singapore and RSA Hong Kong underwrite a balanced mix of Commercial
Specialty and Retail (both Commercial and Personal) business.
RSA’s operations in Singapore had total assets of £236m^1 and net assets of
£30m^1 at 31 December 2013. Net written premiums in 2013 were £66m^1 with a
pre-tax profit of £12m^1. The consideration payable for RSA Singapore is
RSA’s operations in Hong Kong had total assets of £185m and net assets of
£0.4m at 31 December 2013. Net written premiums in 2013 were £47m with a
pre-tax profit of £5m. The consideration payable for RSA Hong Kong is
The consideration payable under each transaction, each of which is subject to
adjustment based on the net asset value of the relevant business as at
completion, is payable in full on completion of the relevant deal. Neither
sale is conditional upon the other sale occurring.
As part of the transaction, senior management are expected to remain with the
respective businesses at completion.
- ENDS -
Rupert Taylor Rea Louise Shield
Head of Investor Relations Director of External Communications
Tel: +44 (0) 20 7111 7140 Tel: +44 (0) 20 7111 7047
Louise Jordan Kaidee Sibborn
Investor Relations Executive Media Relations Manager
Tel: +44 (0) 20 7111 1891 Tel: +44 (0) 20 7337 5164
Notes to editors:
Goldman Sachs acted as Sole Financial Advisor to RSA Group
With a 300 year heritage, RSA is one of the world’s leading multinational
quoted insurance groups. RSA has major operations in the UK, Scandinavia,
Canada, Ireland, Asia and the Middle East, Latin America and Central and
Eastern Europe and has the capability to write business in around 140
countries. Focusing on general insurance, RSA has around 23,000 employees and,
in 2013, its net written premiums were £8.7 billion.
About Allied World
Allied World Assurance Company Holdings, AG, through its subsidiaries and
brand known as Allied World, is a global provider of innovative property,
casualty and specialty insurance and reinsurance solutions. Allied World
offers superior client service through a global network of offices and
branches. All of Allied World's rated insurance and reinsurance subsidiaries
are rated A by A.M. Best Company, A by Standard & Poor's, and A2 by Moody's,
and its Lloyd's Syndicate 2232 is rated A+ by Standard & Poor's and Fitch.
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.
Issued by RSA Insurance Group plc, 20 Fenchurch Street, London EC3M 3AU
^1 Excludes intra-Group business reinsured into RSA Singapore, which does not
form part of the transaction.
RSA Insurance Group Plc
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