RSA looks to sell Asian arm for up to $500m

RSA is looking to sell its Asian operation in an auction that could net up to $500m (£295m), according to reports.

The rumoured sale is part of a group-wide restructure being led by new chief executive Stephen Hester.

It comes off the back of losses caused by extreme weather events and accounting irregularities at its Irish arm which prompted the departure of several senior executives.

According to Reuters, insurers considering the bid include Sompo Japan Insurance, a unit of NKSJ Holdings, as well as AXA, QBE and Allianz.

RSA, which is being advised by Goldman Sachs Group, is expected to begin the sale process in the coming weeks. The insurer declined to confirm the reports.

At RSA’s full year results in February the insurer announced that UK & Ireland, Canada, Scandinavia and Latin America would form core of the group going forward.

Since then the group has sold its businesses in Poland, Latvia, Lithuania and Estonia together with Noraxis, its Canadian broker.

A spokesperson for RSA said: “When we announced the sale of Noraxis we also said that we will continue to evaluate further non-core disposals, some of which we expect to agree during 2014.”