RSA sells Canadian brokerage for C$500m

Insurer RSA has agreed to sell its Canadian brokerage business for C$500 million (£273.3m) as chief executive Stephen Hester continues with his strategy to sell non-core parts of the group.

The group, which recently launched a £773m rights issue after counting the cost of an accounting scandal in Ireland, said the sale of Noraxis to a subsidiary of US brokerage Arthur J Gallagher & Co would help to improve its capital strength.

Hester said: “This disposal represents further progress against our aim of tightening the strategic focus of the group, and brings to around £540m the announced sales since our new strategy and action plan was unveiled in February.

“We are proud of the work that has been done to successfully build Noraxis, however, now is the right time for RSA to realise its investment. We will continue to evaluate further non-core disposals, some of which we expect to agree during 2014.”