Allied World Assurance Company, Ltd. will fork over at least $215 million for RSA Insurance Group’s Hong Kong and Singapore business, fueling further expansion for the mega-insurer in Asia.

The cash deal gives Allied World access to a number of specialty lines including casualty, construction, engineering, marine and property. Expectations are that the transaction should close by the first half of 2005, pending regulatory approvals in Singapore and Hong Kong, and court approval in Singapore. As part of the purchase, Allied World gains the in-force portfolio and related assets and liabilities of both branches. That includes an established commercial insurance business, according to the deal announcement.

RSA’s sale of the business, which generated $250 million in gross written premiums in 2013, represents a changing of the guard, of sorts. RSA has conducted business for more than 40 years in Hong Kong and over 180 years in Singapore, the companies said.

Allied World President and CEO Scott Carmilani noted in a statement that the deal gives his company access to specialty businesses “in key Asian markets.”

“This transaction will significantly deepen and broaden our presence in Asia,” Carmilani said, adding it “brings regional market leadership, complementary product offerings, extensive distribution and an experienced and talented management team to Allied World, strengthening our global insurance franchise.”

In addition to the $215 million purchase price, Allied World said it expects to infuse the division with $90 million more in order to capitalize the business on an ongoing basis.

For RSA’s part, this is at least the second move this summer to reduce its presence in Asia. In July, Swiss RE announced plans to buy Sun Alliance Insurance in China from RSA for about $120 million, as part of a plan to grow its corporate insurance arm.

Source: Allied World