Fosun International Ltd. is involved in “advanced discussions” with RSA Insurance Group Pls regarding an acquisition of the UK insurer’s Middle East business unit, according to a new
Bloomberg report.
Sources told the outlet that Fosun may offer less than $200 million for the Middle Eastern operations, which can be found in Saudi Arabia, the United Arab Emirates, Bahrain and Oman. While this figure is higher than those put forth by other interested parties, sources familiar with the matter say it is no guarantee of a potential deal.
RSA recently sold its Latin American unit to Suramerica SA for $629 million in cash. Analysts believe that the insurer, the subject of an $8.8 billion conditional bid from
Zurich Insurance Group, is undertaking these sales transactions to “bolster its balance sheets.”
Zurich has until September 22 to propose a formal offer, and if it proceeds, could be responsible for the largest insurance acquisition in European history.
Sources believe that RSA is collaborating with the Swedish financial firm UBS Group to find a possible suitor for this unit, which last posted 150 million pounds of net written premiums.
Fosun would also benefit from the purchase of these operations, as it would build upon its newly established presence in the region. In June, it bought a majority stake of Israel-based Phoenix Holdings Ltd for $476 million.
Neither of the two insurers would provide comment on the matter.
