RSA Insurance To Dispose Of UK Legacy Liabilities To Enstar Group - Quick Facts

(RTTNews) - RSA Insurance Group plc (RSANY.PK, RSA.L, RSA) said it has signed contracts to dispose 834 million pounds of UK legacy insurance liabilities to Enstar Group Limited.

RSA's UK legacy insurance business is contained within Royal & Sun Alliance Insurance plc and the Marine Insurance Company Limited. Each disposal is to be implemented as an insurance business transfer.

The transaction covers 834 million pounds of undiscounted liabilities, net of reinsurance, relating to business written in 2005 & prior.

The transaction initially takes the form of a reinsurance agreement, to be effective at 31 December 2016. It substantially effects economic transfer, to be followed by completion of a subsequent legal transfer of the business.

The reinsurance premium paid by RSA to Enstar is 799 million pounds, settled through the transfer of a 682 million pounds portfolio of investment grade assets, with the balance in cash.

The transaction is accretive to RSA's capital position, adding 17 to 20 points of Solvency II coverage.

Stephen Hester, RSA Group Chief Executive said, "Earnings accretion, risk reduction and capital improvement are a happy combination to report. As previously indicated, we expect to deploy the capital resources released to benefit earnings and capital quality through additional debt retirement in 2017."