9 September 2015 Insurance

RSA sells Latin America operations to Suramericana

RSA Insurance Group (RSA) will sell its operations in Latin America (RSA Latin America) to Suramericana SA, the insurance subsidiary of Grupo de Inversiones Suramericana (Grupo SURA), for £403 million.

RSA Latin America, one of the top ten international insurers in the region with a presence in Chile, Argentina, Brazil, Mexico, Colombia and Uruguay, is expected to retain its senior management in each country as part of the agreement.

Stephen Hester, RSA chief executive, said: “We are pleased to announce the disposal of our Latin American businesses to Suramericana. With RSA’s focus on its largest markets in the UK & Ireland, Scandinavia and Canada, it has become increasingly clear to us that RSA is no longer the best strategic owner of these businesses.

“In Suramericana we have an experienced and committed regional player who can make the business a much more central part of their strategy.”
Hester added that the sale is expected to be “strongly accretive to capital for RSA, enhancing operational flexibility”.

He added: “This is the largest remaining disposal we have underway and it is consistent with our stated target to substantially complete RSA’s strategic refocus by the 2015 year end results announcement.”

The deal is subject to regulatory approval and is expected to close in 2016.

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