RSA Insurance Group unveils £130m sale of Singapore and Hong Kong operations

Find out who the buyer is.

RSA Insurance Group plc today revealed that it has reached an agreement 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.

Assuming each transaction completes, RSA will receive aggregate consideration of approximately £130m ($269.3m) payable in cash.

Subject to obtaining relevant regulatory approvals in the respective countries, each transaction is expected to complete during the first half of 2015.

Here’s more from RSA:
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.

RSA’s operations in Singapore had total assets of £236m1 and net assets of £30m1 at 31 December 2013. Net written premiums in 2013 were £66m1 with a pre-tax profit of £12m1. The consideration payable for RSA Singapore is approximately £93m.

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 approximately £37m.

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.