RSA sells China business to Swiss Re

UK insurer RSA has agreed to sell Sun Alliance Insurance (China) to Swiss Re Corporate Solutions for £71 million, as it seeks to tighten the strategic focus of the group.

The transaction is expected to result in a gain on sale and an addition to the group’s tangible net assets of approximately £26 million.

Stephen Hester, RSA group chief executive, said: “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 £14 million of net written premiums in RSA Group’s 2013 financial statements.