RSA Insurance Group planning 'small' acquisitions
RSA Insurance Group is to buy firms to support its growth.
RSA Insurance Group could have hired merger and acquisition
advisors, as its chief executive officer Simon Lee told Reuters in
Toronto it intends to purchase small companies at present.
This ought to drive its expansion outside of its British home
market, he said.
However, the business leader noted the firm is not going to make
any multibillion-dollar deals in the immediate future.
"My focus is firmly on bolt-on acquisitions," Mr Lee told the
news source, defining these as those with a maximum value of around
He explained he thinks it is incumbent on him not to receive
finance through the equity markets but to pay for growth using
RSA's own resources.
This effectively caps the maximum size of the acquisitions it
can make, the representative declared.
RSA was previously known as Royal & Sun Alliance and
received an operating profit of £884 million during 2011, which is
38 per cent higher than levels seen in 2010.
Posted by David Gleck
Source: Reuters, April 17th