An indication of RSA insurance coverage firm is pictured exterior its workplace in London on this December 13, 2013. REUTERS/Toby Melville/File Photo Acquire Licensing Rights
LONDON, Oct 6 (Reuters) – Aviva Plc (AV.L) is amongst a small handful of insurers exploring bids for the UK shopper operations of rival RSA, two folks acquainted with the matter instructed Reuters.
RSA’s proprietor, Intact Financial Corp (IFC.TO), stated final month it was reviewing strategic choices for RSA’s private traces business, which incorporates home and pet insurance coverage, to concentrate on industrial insurance coverage.
Suitors have been requested to submit affords subsequent month in an public sale managed by JPMorgan, stated the folks, who spoke on situation of anonymity.
The unit affords insurance policies on to customers by means of its More Than model, in addition to by way of partnerships with excessive avenue retailers together with John Lewis and Tesco.
Aviva and JPMorgan declined to remark. Intact didn’t reply to a request for remark.
“Intact is exploring strategic choices in respect of RSA’s UK private traces business, which can embrace a doable sale,” an RSA spokesperson stated, including that it expects to finish the strategic evaluation within the fourth quarter.
For Aviva, which affords each life and common insurance coverage, a deal would come scorching on the heels of its acquisition of the UK life insurance coverage business of AIG for 460 million kilos, its largest purchase but underneath CEO Amanda Blanc.
Shares in Aviva shot up 9% on Friday amid rumors the group might itself grow to be a takeover goal.
The deliberate divestment by RSA comes simply two years after the London-based insurer was taken off the inventory market and break up in two by Canada’s Intact and Denmark’s Tryg (TRYG.CO), which saved the goal’s Nordic portfolio.
During this time, private traces insurers within the UK have been impacted by regulatory modifications and claims inflation because the cost of dwelling soared. This led RSA to exit the motor insurance coverage market earlier this 12 months forward of the present sale.
Reporting by Pablo Mayo Cerqueiro, Amy-Jo Crowley and Carolyn Cohn in London; Editing by Anousha Sakoui, Kirsten Donovan
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