The fourth largest general insurance group in Canada, Royal & Sun Alliance, is to sell its life operations to Maritime Life Assurance for approximately $154 million. Net assets as at 31 December 2000 were around $98 million.
Royal & SunAlliance Group chief executive Bob Mendelsohn said: “Our Canadian life business lacks the scale to compete successfully as the sector continues to consolidate. We have therefore decided to concentrate on developing our core general insurance business in the Canadian market.
“The move is in keeping with our strategy of building scale businesses in key markets and exiting those businesses where we cannot generate satisfactory returns or develop the scale of business we need to compete effectively.”
The transaction is subject to regulatory approvals but it is anticipated that it will be finalised in October of this year.
About Royal & SunAlliance
A subsidiary of John Hancock Life Insurance Company, one of the largest life insurance groups in the United States, Royal & SunAlliance operates in over 50 countries worldwide and transacts business in more than 130. Worldwide net premium income in 2000 was $7.7 billion. The head office is in Toronto, Ontario.