RSA sells Italian business

Insurer RSA has agreed to sell its Italian business to ITAS Mutua, an Italian mutual insurer.

RSA will sell the entire business of the Italian branches of Royal & Sun Alliance Insurance and the Sun Insurance Office.

The insurer will pass on insurance liabilities of £434 million with their associated assets and receive a further goodwill payment of £19 million. The transaction is expected to complete during the second half of 2015.

RSA said expects to recognise a gain on sale of £28 million and an addition to the group’s tangible net assets of approximately £8 million.

Stephen Hester, RSA group chief executive, said: “This transaction continues the excellent momentum of our announced disposals in 2014 and represents further progress in tightening the strategic focus of the group.”