RSA in talks to sell life arm

Click to follow
The Independent Online

Royal & Sunalliance, the insurer trying to turn around record losses and weak reserves, yesterday confirmed that it was in talks to sell its closed UK life business.

Royal & Sunalliance, the insurer trying to turn around record losses and weak reserves, yesterday confirmed that it was in talks to sell its closed UK life business.

Initial bids from two interested parties were made to the group last week. The business, which has about £30bn under management, is thought to be worth £600m. Resolution Partners, a private equity vehicle led by Clive Cowdery, former chief executive of GE's insurance division, is one of the bidders.

Mr Cowdery, who has the backing of the Fleming investment banking family, knows the RSA business well from his time at GE, which considered buying it four years ago. Bidders then were put off by costly policyholder guarantees and potential liabilities. Arguments over the scale of potential mis-selling liabilities are likely to play a key part in the negotiations.

Comments