RSA Insurance sells stake in Indian joint venture

FTSE 100 insurer RSA has sold its minority holding in Royal Sundaram Alliance, its joint venture in India.

The company has agreed to offload its 26% stake for £46m to its joint venture partner Sundaram Finance Limited.

The transaction is expected to result in a gain on sale of around £16m and an addition to RSA’s tangible net assets of £19m.

“This transaction continues the excellent momentum of our disposal programme and represents further progress in tightening the strategic focus of the group,” said chief executive Stephen Hester.

RSA expects the deal to complete within six months.

Net written premiums from RSA’s India division totalled just £64m in the first half of 2014, compared with £81m the year before.