Ratings for Royal & SunAlliance (R&SA) were unaffected by the announcement of the sale of its UK life insurance operations, said Standard & Poor's (S&P).
The rating for R&SA Insurance Plc and is related subsidiaries remained at A-/negative/A-2.
S&P said the release of approximately £650m of statutory capital and £500m of risk-based capital will strengthen the group's capital position, which is currently regarded as adequate by the ratings agency.
The sale will also remove any future uncertainty regarding R&SA's exposure to misselling costs or other calls on capital, it said.
But it said that although the transaction is positive for the ratings, it was not sufficient to remove the negative outlook, which continues to reflect the execution risks in restructuring the US operations.
Commenting on the disposal, Celent senor analyst Donald Light, said the sale fitted into an emerging trend in the market.
He said: “A number of insurers are pulling back to their property/casualty roots by selling their life businesses.
“This strategy has a double benefit: the proceeds strengthen the seller's balance sheet, and management can focus on a business they know best.
"These insurers are betting that they will be a stronger and more attractive company for policyholders and investors as a pure play.”
