BRIEF-RSA Insurance sells stake in Noraxis for C$500 million

Tue May 20, 2014 2:21am EDT
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May 20 (Reuters) - RSA Insurance Group Plc :

* To sell shareholding in Noraxis Capital Corporation, its canadian insurance brokerage business, to a subsidiary of Arthur J. Gallagher & Co

* Total aggregate price for business is C$500 million

* Including estimated excess working capital, RSA is expected to receive cash consideration of C$441 million (£238m)

* Transaction is expected to close within two months

* Transaction expected to result in gain on sale of approximately 140 million pounds and is expected to add approximately 225 million pounds to group's tangible net assets

* In 2013, Noraxis accounted for 184 million pounds of total assets and 85 million pounds of shareholders' funds at December 31 Source text for Eikon: Further company coverage: