Following a review of its businesses, CUSAF (CGU plc's 51% owned South African subsidiary) has agreed the sale of its life assurance, unit trust and investment management interests to Metropolitan Life Limited of South Africa. The proposed sale was announced on 21 October 1998, and approved by CUSAF's shareholders on 25 January 1999.
Following a review of its businesses, CUSAF (CGU plc's 51% owned South African subsidiary) has agreed the sale of its life assurance, unit trust and investment management interests to Metropolitan Life Limited of South Africa. The proposed sale was announced on 21 October 1998, and approved by CUSAF's shareholders on 25 January 1999.
The consideration will be approximately Ł35m in cash. In addition, Metropolitan intend to restructure the acquired businesses and have agreed to pay CUSAF 50% of the increase in embedded value attributable to shareholders within the next three years.
CUSAF will continue to write general insurance business and plans to develop distribution in conjunction with Metropolitan.