A U.K.-based insurance group is looking for prospective buyers for the sale of one of its Canadian businesses, which could help the company raise as much as $369-million.
According to a recent
Sky News report that cites unidentified sources, RSA has begun the auction of Noraxis Capital Corp., a network of Canadian regional insurance brokers.
An RSA spokesperson – who declined to comment on the
Sky News story – said a business review was under way and that the company would announce the outcome on Feb. 27.
Noraxis members include CG&B Group, Renfrew, Ranger, Stevenson & Hunt, Atrens Counsel, Fraser & Hoyt and Bell & Grant.
Sky News said the sale of the Roins Financial Services Ltd. subsidiary had begun before the insurer’s chief executive officer Stephen Hester took over in early February, and that it has his approval.
Mr. Hester, ousted from state-backed RBS in June by Britain’s finance ministry, replaced former CEO Simon Lee, who resigned in December, 2013, over allegations of accounting irregularities that left the U.K. insurer with a $365.7-million hole in its finances.
In January, a PricewaterhouseCoopers probe confirmed financial irregularities and “inappropriate collaboration” by managers at RSA Ireland, leading to the dismissal of that country’s chief financial officer and claims director. (continued.)
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RSA Ireland chief financial officer Rory O’Connor and claims director Peter Burke were dismissed “for their roles in relation to large loss and claims accounting irregularities,” according to a statement from the London-based insurer.
The British insurer has placed the blame for $128.4 million of losses on a “small number of senior executives” in Ireland after the PwC review into financial irregularities confirmed inappropriate collaboration among managers.
Sky News quoted its sources as saying that existing players in the Canadian insurance market would be among those most interested in buying Noraxis.
RSA operates in 31 countries across Europe, Asia, Latin America, Canada and the Middle East.
Also see:
Former Bank of Scotland exec to head up U.K. RSA
