RSA disposes of Indian insurer stake

Insurer RSA has sold its minority stake in Indian insurer Royal Sundaram Alliance Insurance Company to Sundaram Finance, its joint venture partner.

RSA expects to receive cash consideration of approximately £46 million for the 26 percent holding. The transaction is expected to result in a gain on sale of approximately £16 million and an addition to the group’s tangible net assets of approximately £19 million. Completion is expected within six months.

Stephen Hester, RSA group chief executive, said: “This transaction continues the excellent momentum of our disposal programme and represents further progress in tightening the strategic focus of the group.”