The U.K.’s Royal & Sun Alliance finally achieved at least one of its goals with the announcement that it has agreed to sell its asset management business to Friends Ivory & Sime, a financial group that is 67 percent owned by UK life and pension insurer Provident PLC.
Friends Ivory agreed to pay £240 million ($350 million) and will also continue to manage R&SA’s life and general insurance funds for the next 10 years. The deal will make the Provident’s subsidiary one of the top 10 fund mangers in the U.K.
It also marks the first success R&SA has had in implementing its plan to sell off at least seven of its subsidiary operations in the hopes of raising £800 Million ($1.165 billion) in order to rebuild its capital reserves and fund the expansion of its general insurance business.
Standard & Poor’s has warned that, “Inability by management to demonstrate sufficient progress toward rebuilding capital is likely to result in the ratings being lowered.”|”royal, , sun, sells, u.k., asset, management, business
Topics Mergers & Acquisitions
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