UK insurance group Royal & Sun Alliance has agreed a $300 million deal to 'sell' its US operation to Arrowpoint Capital, a vehicle set up by its US management team.
The $300 million price of the group’s US businesses is to be ‘deferred’ and will be paid off from the future revenues of the US operation. In connection with the transaction, Royal & Sun Alliance is also delisting from the New York Stock Exchange.
In September 2003, the group announced that its US operation was strategically non-core. Its US operation was closed to new business and a plan was instigated to bring its US exposure to an end.
Today’s announcement is a significant step for the group. The sale of the US operation is the right deal for our shareholders and US policyholders. The transaction will bring certainty and finality and delivers on our objective of a clean exit from the US, commented Andy Haste, CEO of Royal & Sun Alliance.