UK-based insurer Aviva has rejected a proposal from RSA to acquire its general insurance businesses in the UK, Ireland and Canada excluding RAC and Health (GI business) for a cash consideration of £5bn.

The proposal would have left the pension liabilities of the GI business with Aviva as well as the general insurance businesses in the Netherlands, France, Italy, Poland, Turkey and Singapore.

Aviva chairman Lord Sharman said that the Aviva board considered RSA’s proposal carefully with a clear focus on maximising value for Aviva shareholders.

Given the compelling strategic and financial benefits to Aviva shareholders of retaining the GI business, its upside potential and the terms offered by RSA, the board was unanimous in rejecting this proposal, Sharman said.