Royal & Sun Alliance closer to winning approval for US disposal UPDATE |
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Published
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Mon, 22 Jan 2007 16:27
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(Adds detail, background)LONDON (AFX) - Royal & Sun Alliance Insurance Group, the UK general insurer, said it has moved a step closer to winning regulatory approval for the sale of its troubled US unit.An RSA spokesman said officials recommended that the disposal go ahead at a public hearing on Friday in the state of Delaware, where the company's US subsidiary is based for legal purposes. The hearing also included testimony from independent experts who said that RSA's US business is solvent and financially viable.The state's insurance regulator is expected to reach a final decision within 30 days. A decision in favour would clear the way for the deal to go ahead.In September last year, RSA agreed to sell the US operation to its own management for 158 mln stg. The US unit closed its doors to new customers in 2003 after being hit by spiralling asbestos-related claims.The company will incur a net pretax loss of about 480 mln stg from the disposal, once asset write-offs and one-off capital contributions are taken into account.RSA shares were up 1.2 pct at 163 pence by 2.45 pm, valuing the company at about 4.87 bln stg.newsdesk@afxnews.commn/jfr/mn/cmrCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Royal & Sun Alliance wins regulatory backing for US disposal 