As it continues to attempt to turnaround its business following a collapsed takeover last year, RSA has today announced the completion of the sale of its Mexican arm – part of a £403 million sale of its Latin American businesses.
The insurance group agreed to sell its Latin American businesses to Suramericana in September last year. The wing operates across Chile, Mexico, Brazil, Argentina, Uruguay and Colombia with the sale of operations in Brazil completed on February 29; in Colombia on March 31; and in Argentina and Chile on April 29. Only the Uruguay arm remains, with a deal expected to be completed during the coming months.
The 300-year-old business was hit last year by increased competition to its More Than brand in the home and car insurance sectors, while the company was also affected by losses for events such as the Chile earthquake.
Over the summer last year it was rumoured that the company would be subject to a £5.6 billion takeover by Zurich
– but that fell through officially last November. The Latin American sale to Suramericana was already complete but rival bidders are believed to have pulled out as a result of the rumoured takeover.
Since then the company has undergone a restructure and enjoyed an upturn in its share prices.
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