9 Dec 2015 07:00
RSA announces sale of operations in Russia
RSA Insurance Group plc (‘RSA’) announces today that it has signed contracts, subject to regulatory approvals, to sell its entire shareholding (c.75%) of Joint Stock Company “Intouch Insurance” (‘RSA Russia’) to Joint Stock Insurance Company BLAGOSOSTOYANIE for approximately £5m payable in cash.
Paul Whittaker, Group Chief Operating Officer, commented:
“Our business in Russia does not have the same scale as our core franchises in the UK, Canada and Scandinavia. Therefore we have decided to sell Intouch to a company that is an experienced and committed player in the Russian market.”
RSA Russia accounted for net written premiums of £27m and an underwriting loss of £5m within RSA’s 2014 group results (before deduction of non-controlling interest)
It is anticipated that completion will take place in early 2016.
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| Rupert Taylor Rea Head of Investor Relations | Louise Shield Director of External Communications | |||
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| Ryan Jones Investor Relations Manager | ||||
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Notes to editors:
Financial Advisors
Societe Generale Corporate & Investment Banking acted as Sole Financial Advisor to RSA.
About RSA
With a 300 year heritage, RSA is a multinational quoted insurance group. RSA has core operations in the UK & Ireland, Scandinavia, and Canada, and has the capability to write business in around 140 countries. Focusing on general insurance, RSA has around 19,000 employees and, in 2014, its net written premiums were £7.5 billion.
About Joint Stock Insurance Company BLAGOSOSTOYANIE
JSIC BLAGOSOSTOYANIE is a leading local insurer offering a wide range of products to corporates, banks and individuals, with strong international corporate clientele represented by 100+ names, 600+ group contracts and 150,000+ lives insured, and with bancassurance partnerships with 20+ banks insuring 3.5+ million customers.
Important Disclaimer
This press release may contain ‘forward-looking statements’ with respect to certain of the Group’s plans and its current goals and expectations relating to its future financial condition, performance results, strategic initiatives and objectives. Generally, words such as “may”, “could”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “aim”, “outlook”, “believe”, “plan”, “seek”, “continue” or similar expressions identify forward-looking statements. These forward-looking statements are not guarantees of future performance. By their nature, all forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to future events and circumstances which are beyond the Group’s control, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation or regulations in the jurisdictions in which the Group and its affiliates operate. As a result, the Group’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Group’s forward-looking statements. Forward-looking statements in this press release are current only as of the date on which such statements are made. The Group undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Nothing in this press release shall be construed as a profit forecast.
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