Shares in RSA Insurance Group closed up 1.7 per cent yesterday, as the company continued with its strategy of disposing non-core assets and announced the sale of its 26 per cent holding in Indian insurer Royal Sundaram Alliance Insurance.
RSA sold the stake to its joint venture partner, Sundaram Finance, for £46m, and the company said the transaction was expected to result in a gain on sale of approximately £16m. The deal is set to complete within the next six months.
Stephen Hester, RSA’s chief executive, commented: “This transaction continues the excellent momentum of our disposal programme and represents further progress in tightening the strategic focus of the group.”
Hester was appointed to the helm of RSA a year ago, not long after it had endured a series of scandals relating to finance issues in its Irish business. He has led the group on a turnaround plan, which has seen it raise £775m through a rights issue, as well as making millions of pounds worth of disposals.