RSA sells Italian operations for £19m

RSA has agreed to sell its Italian branches and insurance books to Itas Mutua for a cash payment of £19m.
The insurer follows Direct Line Group’s in selling off operations in the country- DLG sold its Italian and German operations to Mapfre for £430.5m in September.
In selling the Italian units, RSA will pass on insurance liabilities of £434m, with the insurer expecting to recognise a gain on sale of £28m and an addition to the Group’s tangible net assets of approximately £8m.
RSA Italy underwrites personal and commercial business, and accounted for £221m of net written premiums in the insurer’s 2013 figures.
The deal is expected to close in the second half of 2015, pending regulatory approval.
RSA group CEO Stephen Hester 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.”
Source: Postonline