UK - Royal & SunAlliance has withdrawn completely from the UK life and pensions market after selling its operations to Resolution Life for a total of £850m.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.”
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers