(Adds details, quote from statement)
LONDON, July 3 RSA Insurance Group Plc
has reached an agreement to sell its business in China for 71
million pounds ($119 million), one of several smaller asset
sales aimed at shoring up the British company's finances.
The sale to Swiss Re Corporate Solutions is
expected to result in a gain on the sale and an addition to the
company's tangible net assets of about 26 million pounds, RSA
said. The transaction adds to recently announced disposals in
the Baltics, Poland and Canada.
"We are continuing to evaluate further non-core disposals,
some of which we expect to agree during 2014," Hester said in a
RSA is restructuring under new Chief Executive Stephen
Hester after losses caused by extreme weather and accounting
irregularities at its Irish division hit its finances and
prompted the departure of several senior executives.
Britain's largest non-life insurer underwrites both
commercial and personal insurance risks in China.
RSA has businesses in Hong Kong, Singapore, China and India
but those operations contributed less than 2 percent to net
premiums in the first quarter of 2014. That has encouraged the
company to focus on its bigger markets such as Britain, Ireland
($1 = 0.5956 British Pounds)
(Reporting by Nishant Kumar; editing by Tom Pfeiffer)