General Insurance Article - RSA to sell China unit to Swiss Re

 RSA Insurance Group has announced that it has reached agreement to sell Sun Alliance Insurance Limited to Swiss Re Corporate Solutions.

 RSA will receive consideration of approximately £71m payable in cash. The transaction is expected to result in a gain on sale and an addition to the Group’s tangible net assets of approximately £26m. Completion is subject to obtaining regulatory approval.

 Stephen Hester, RSA Group chief executive, comments “This transaction builds on the momentum of our recently announced disposals in the Baltics, Poland and Canada, and represents continued progress against our aim of tightening the strategic focus of the Group. We are continuing to evaluate further non-core disposals, some of which we expect to agree during 2014.”

 RSA China underwrites both commercial and personal insurance risks and accounted for £14m of net written premiums in RSA Group’s 2013 financial statements.