Royal & SunAlliance (R&SA) has completed the sale of its 71.7% stake in Danish life and pensions operation, Codan.
The deal with SEB Trygg Liv went through for about £173m, payable in cash. The amount is subject to an accounting adjustment on the basis of the business' net assets at 30 September 2004.
R&SA's share of Codan was £164m at 31 December 2003.
“After separation and transaction costs, we would currently expect the disposal proceeds to broadly reflect net asset value. The net written premiums for 2003 were £324m and the profit contribution for the same period was about £36m,” said the insurer.
The group said the deal was in line with its strategy of focusing on general insurance and releasing capital from its life businesses.
It said the sale was another step in the transformation programme. It will release UK statutory capital and risk based capital of about £150m, said the company. The proceeds will be used to support the insurer's general insurance business.
R&SA chief executive Andy Haste, said: “This is a good deal for shareholders. It is another step in the delivery of our strategy of transforming the group into a focused, high-performing general insurance company.”
The deal is subject to regulatory approval.
