UK-based general insurance company RSA Insurance Group has signed an agreement with ITAS Mutua to sell its entire business of the Italian branches of Royal & Sun Alliance Insurance and Sun Insurance Office (together RSA Italy).
The company has sold the business for a cash payment of £19m, and will transfer insurance liabilities of £434m with their associated assets, as part of the deal.
RSA Insurance Group chief executive Stephen Hester said: "This transaction continues the excellent momentum of our announced disposals in 2014 and represents further progress in tightening the strategic focus of the Group."
RSA Italy provides both personal and commercial insurance risks services. The division reported £221m of net written premiums and a £1m underwriting loss in RSA Group’s 2013 financial statements.
Subject to regulatory approval, the transaction is expected to be completed in the second half of 2015.
RSA noted that it is expecting to recognize a gain on sale of £28m and an addition to the group’s tangible net assets of around £8m.