CGNU plc (“CGNU”) has agreed the sale of its entire interest in the holding company of CGU Companhia de Seguros (“CGU Seguros”), its Brazilian general insurance subsidiary, to the Brazilian subsidiary of Royal & Sun Alliance Insurance Group plc for R$51 million (£15 million) in cash.
CGNU plc (“CGNU”) has agreed the sale of its entire interest in the holding company of CGU Companhia de Seguros (“CGU Seguros”), its Brazilian general insurance subsidiary, to the Brazilian subsidiary of Royal & Sun Alliance Insurance Group plc for R$51 million (Ł15 million) in cash.
CGU Seguros is a niche general insurer focused on small to medium sized enterprises and personal lines. In 2000 it had gross written premiums of Ł48 million.
The disposal is consistent with CGNU’s strategy of building top five positions in its chosen markets and withdrawing from operations where it does not have sufficient scale to achieve this.
The transaction is subject to regulatory approval and is expected to complete in the fourth quarter of 2001.
Enquiries:
Analysts/Investors:
Steve Riley, +44 (0) 20 7662 8115
Investor Relations Director, CGNU
Media:
Hayley Stimpson, +44 (0) 20 7662 7544
Director of External Affairs, CGNU
Geoffrey Pelham-Lane, +44 (0) 20 7269 7194
Financial Dynamics
Notes to editors
- CGNU plc is the world’s sixth-largest insurance group and the largest insurer in the UK
- Premiums have been converted at Ł1=R$2.77 (2000 average rate of exchange) and the purchase price at Ł1=R$3.48 (30 July 2001 closing rate).