UK - Royal & SunAlliance has withdrawn completely from the UK life and pensions market after selling its operations to Resolution Life for a total of £850m.
Resolution will pay RSA £750m in cash and £100m in shares. Additionally, the contingent £320m loan RSA provided its UK life business will be repaid at completion. At December 31, £146m of the loan had been used.RSA said the disposal would allow it to focus on general insurance.
It will use the proceeds to support both its capital position and the underwriting of general insurance. The deal is expected to be completed by the end of October.
RSA chief executive Andy Haste said: “I am pleased to announce the sale of the UK life operations. This is a good deal for the group and clear evidence of our commitment to deliver on our strategy.
“The transaction represents a clean exit from the UK life business and provides certainty for our shareholders.
“For staff and policyholders, the sale is to a company whose core business focus is the management of closed life operations.”
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