RSA to dispose £834m of UK legacy insurance liabilities to Enstar
RSA Group has agreed to dispose its UK legacy insurance liabilities worth £834m to Bermuda based Enstar Group.
The risk clean-up transaction will be initially done through a reinsurance agreement, effective at 31 December 2016.
It is expected to considerably impact economic transfer and later on by the completion of the resulting legal transfer of the business.
RSA Group chief executive Stephen Hester said: “It allows us to focus even more on driving the outperformance of RSA’s continuing businesses. Earnings accretion, risk reduction and capital improvement are a happy combination to report.
“As previously indicated, we expect to deploy the capital resources released to benefit earnings and capital quality through additional debt retirement in 2017.”
The UK legacy insurance business of the British multinational general insurer is contained within Royal & Sun Alliance Insurance and the Marine Insurance Company.
RSA stated that each disposal will be implemented as an insurance business transfer in accordance to Part VII of the Financial Services and Markets Act 2000 with a temporary reinsurance to transfer the economic risk of the business subject to Part VII Transfer completion.
In another development, the British general insurer has unveiled a new operating model for its Global Risk Solutions (GRS) unit with an objective to provide brokers and customers enhanced access to decision-makers and allowing GRS to function with more focus in its selected markets.
The insurer has announced that with immediate effect, GRS will feature three units – Europe, Specialty & Wholesale, and UK & Multinational. Each of the unit heads will be reporting to GRS managing director Hayley Robinson.
Led by Richard Turner, the Europe unit will be responsible for specialty lines in the continent, Dubai International Financial Centre and Scandinavia hull, and Europe & international marine.
The Specialty & Wholesale unit led Gareth Hilton will handle marine, London Market construction and engineering, wholesale international property & casualty, and renewable energy.
The UK & Multinational unit on the other hand will take care of the present UK and multinational risk managed business including real estate, and will be led by Gary Long.
Image: RSA Group office in London. Photo: courtesy of Diliff and Wikipedia.