Intact Financial, the owner of RSA, recently announced that the company is weighing options for the personal lines segment of RSA.
The personal lines unit of RSA comprises home and pet insurance.
This segment provides policies to clients through its More Than brand and through collaborations with retailers such as John Lewis and Tesco.
The potential divestment is part of Intact’s strategy to focus on the commercial insurance business.
Suitors are to submit offers in an auction managed by JPMorgan next month, sources noted.
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The publication quoted an RSA spokesperson as saying: “Intact is exploring strategic options in respect of RSA’s UK personal lines business, which may include a possible sale.”
The company intends to conclude the strategic review in the fourth quarter of 2023, the spokesperson added.
Aviva and JPMorgan declined to comment on the latest development, while Intact did not respond to the publication’s request for comment.
The potential acquisition of RSA’s consumer business in the UK comes on the heels of Aviva’s bid to take over American International Group’s (AIG) UK life insurance unit, AIG Life UK.
In September this year, Aviva entered an agreement to acquire AIG Life UK in a cash transaction totalling £460m ($562.83m).
The prospective offloading by RSA comes after the company exited the UK personal lines motor insurance market, which generated nearly £120m in annual premiums.
Last month, Intact RSA signed an agreement for the acquisition of Direct Line Insurance Group’s brokered Commercial Lines business for £520m.