RSA to sell Baltics, Poland operations

RSA Insurance Group plc has decided to sell its operations of Lietuvos Draudimas AB (Lithuania), AAS Balta (Latvia), the business of the Estonian branch of Codan Forsikring A/S (together RSA’s operations in the Baltics), and Link4 Towarzystwo Ubezpieczen Spolka Akcyjna (Poland) to Powszechny Zaklad Ubezpieczen sa (PZU).

Assuming each of the four transactions completes (and subject to the adjustments described below), RSA will receive total aggregate consideration of approximately EUR360 million payable in cash. The transactions are expected to add around GBP200 million to the Group’s tangible net assets, improving the Group’s capital strength.

Subject to obtaining relevant regulatory approvals in the respective countries, each transaction is expected to complete during the second half of 2014.

Stephen Hester, RSA group chief executive said: “These disposals are in line with our stated aim of focusing the Group’s geographical spread onto its core businesses in the UK and Ireland, Scandinavia, Canada and Latin America, and represent a good deal for our shareholders, customers and employees.”

RSA’s operations across the Baltics cover a broad range of Personal and Commercial products.