Ahead of a UK bank holiday long weekend unsurprisingly not too much of interest in the European equity markets...
The RSA Insurance RNS did catch my eye. I talked about 'further disposals...can be value-adding to the tangible asset base' earlier in the month at the half-yearly numbers declaration (link here) and this is apparent again today:
'RSA Insurance Group plc announces that today it has reached an agreement, subject to regulatory approvals, to sell the insurance business of each of its branches in Singapore (RSA Singapore) and Hong Kong (RSA Hong Kong) to Allied World Assurance Company, Ltd (Allied World).
Assuming each transaction completes (and subject to the adjustments described below), RSA will receive aggregate consideration of approximately £130m payable in cash. The transactions are expected to result in a gain on sale of approximately £110m and an addition to the Group’s tangible net assets of approximately £95m, further improving the Group’s capital strength'
So £95m is not a huge amount...but it does add 3.6% to the tangible asset base for foregoing 2.9% of their net written premiums.
So another forward step. Back in the earlier linked article I opined that:
'The share is also approaching the money raising late Q1 low too...feels like the time (especially in any generalised market weakness) to consider a higher risk add/buy'
This still feels correct - I think the bottom is forming. Back the (still newish) management's continued simplification.