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Member, Beacon International Group, Ltd.
LONDON--Royal & SunAlliance Insurance Group P.L.C. has sold its U.S. surplus lines unit, Royal Specialty Underwriting Inc., to Alleghany Insurance Holdings L.L.C. for £72 million ($119.7 million).
RSUI recorded net written premiums of about £320 million ($531.9 million) in 2002, according to RSA.
RSA said it would retain RSUI's profits for the first half of 2003. For the first three months of this year, RSUI recorded operating profits of about £51 million ($84.8 million), the company said in a statement.
The sale is part of RSA's turnaround plan, announced last fall (BI, Nov. 11, 2002).
"This transaction significantly reduces the volatility and catastrophe exposure of our U.S. business and is an important part of our capital release program," Andy Haste, group chief executive of RSA, said in the statement.
RSUI's 280 staff members will be transferred to Alleghany.
RSA also announced the sale of its Puerto Rican operations to San Juan-based Cooperativa de Seguros Multiples de Puerto Rico for £38 million ($63.2 million).