Royal & Sun Alliance has signed a framework agreement with Direct Insurance Financial Investments (DIFI), to form a joint venture to access markets in Eastern Europe and Russia.
The venture will own Link4, the direct insurance operation in Poland, and has plans to replicate this business model in the Czech Republic and Russia.
On satisfactory completion of a due diligence review, R&SA will pay £44m in cash for a 50% shareholding in and joint control of the Joint Venture. Going forward, the group will invest a further £44m to fund future growth of the venture, matching DIFI's current investment.
Paul Whittaker, Emerging Markets CEO commented, “This is an exciting opportunity to invest in the number 1 direct insurer in the Polish market and a strong base from which to export this successful model into other attractive markets. I look forward to combining the Group's technical excellence with DIFI's track record of quickly establishing and building leading positions in new markets.”
