UK-based RSA Insurance Group has agreed to divest its 26% stake in Indian insurer Royal Sundaram Alliance Insurance, for around £46m ($70.7m).
RSA’s joint venture partner Sundaram Finance, which currently owns 74% interest, is buying the stake in the insurer.
RSA Group chief executive Stephen Hester said: "This transaction continues the excellent momentum of our disposal programme and represents further progress in tightening the strategic focus of the Group."
RSA noted that the deal is expected to result in a gain of around £16m and about £19m is being added to the group’s tangible net assets.
The transaction is expected to be completed within six months, according to RSA.
Claimed to be the first Indian private non-life insurance company, Royal Sundaram provides general insurance products, including motor, health, personal accident, home and travel insurance for individual customers.
The company also offers a wide range of fire, marine, engineering and liability policies for commercial clients in the country.
In April 2014, RSA signed an agreement to divest its insurance business in the Baltics and Poland to Powszechny Zaklad Ubezpieczen sa (PZU), in a cash transaction worth £300m.
Image: Royal Sundaram provides general insurance products such as motor, health, personal accident, home and travel insurance for individual customers. Photo: courtesy of Stuart Miles/FreeDigitalPhotos.net.