Closely examining the Latin American businesses of AIG and restructured businesses of troubled financial group, Fortis
The UK-based insurance group, RSA is eyeing the distressed operations of Latin American arm of troubled US insurer, AIG, as well as Fortis Insurance International, as part of its global expansion strategy – reported The Telegraph.
According to the newspaper, at present, 42% of RSA’s business comes from the UK, 46% from international operations, and a meagre 12% from emerging markets. Against this backdrop, the company wants to expand its presence in Europe and Latin America, as particularly the latter has emerged as an attractive destination for insurance companies with ever increasing consumer spending power in countries such as Brazil.
It has been reported that RSA intends to use the proceeds of approximately GBP615 million rights issue to fund the acquisitions of the American giant and the Belgian-Dutch group. It has appointed JP Morgan and Merrill Lynch to launch a potential capital raising within weeks, reported the newspaper.