Royal & SunAlliance (R&SA) is fighting an attempt by disgruntled US policyholders to stall approval of the sale of its US division.
The deal, which R&SA group chief executive Andy Haste told shareholders would be completed by the end of 2006, will now have to wait for a public hearing on 19 January to decide whether policyholders will agree to authorise the deal.
R&SA is locked in a battle with 15 US companies who want the insurer to realise outstanding claims worth in excess of $2bn before selling off its US arm.
The companies, which includes General Motors (GM), would like to see the sale blocked.
R&SA's bid to offload its troubled US operation had already been delayed when the initial hearing officer stepped down in late November after GM complained that the law firm she worked for had acted for R&SA in the past.
Although the legal problems have prevented R&SA completing the deal before the end of the calendar year, the insurer said it still hoped to conclude the sale before it filed its 2006 accounts.
"We are still hopeful the US sale will be concluded in the 2006 financial year in terms of our reporting," an R&SA spokesman said.
