RSA seeks to sell Asian operations

RSA Insurance Group Ltd is looking to sell its Asian operations in an auction that could raise USD500 million and draw a wide range of suitors, according to a Reuters report.

The sale is part of a group-wide restructuring led by chief executive Stephen Hester, after losses caused by extreme weather and accounting irregularities at its Irish division hit its finances and prompted the departure of several senior executives.

Insurers considering bids include Sompo Japan Insurance, a unit of NKSJ Holdings Inc as well as France's AXA, sources said. Australia's QBE Insurance Group Ltd and German insurer Allianz SE are also weighing their options, they added.

In Asia, RSA has businesses in Hong Kong, Singapore, China and India but those operations contributed less than two percent to net premiums in the first quarter of 2014. That has encouraged the company to focus on core markets, such as the United Kingdom, Ireland and Scandinavia. Net earned premiums from Asia fell seven percent in the first quarter of 2014 to USD64 million.