Allied World to buy RSA insurance operations in Hong Kong and Singapore
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Allied World Assurance Co. Holdings A.G.'s Allied World Assurance Co. Ltd. unit has reached definitive agreements to acquire the Hong Kong and Singapore operations of Royal & Sun Alliance Insurance P.L.C. for about $215 million in cash, Zug, Switzerland-based Allied World said.
In a statement Thursday announcing the deal, Allied World said the RSA business includes a niche group of specialty lines, including casualty, construction and engineering, marine and property.
The businesses had total gross premiums written of approximately $250 million in 2013.
According to terms of the transaction, Allied World will acquire the in-force portfolio, related assets and liabilities of both branches, Allied World said. Allied World's current Hong Kong and Singapore operations include an established commercial insurance business.
“Subject to adjustments, on completion, Allied World will fund the purchase price of $215 million with cash on hand. In addition to the purchase price, Allied World expects that an additional $90 million will likely be required to appropriately capitalize the business on an ongoing basis,” Allied World said in the statement.
“This is a truly unique opportunity to acquire leading specialty businesses in key Asian markets. This transaction will significantly deepen and broaden our presence in Asia,” Allied World President and CEO Scott Carmilani said in the statement.
Allied World said the deal, which is subject to regulatory approvals in Singapore and Hong Kong as well as court approval in Singapore, is expected to be completed during the first half of 2015.
