Royal & SunAlliance has made a highly unexpected move and decided it is going to sell its Asia Pacific businesses through a public share offering.
The cash strapped United Kingdom-based general insurer has been selling assets for more than a year to help its financial situation.
It had been trying to sell its Australasian funds management and life insurance businesses as a single entity since early this year.
The decision to go to an IPO indicates that it has had difficulty achieving this objective.
In New Zealand RSA includes funds management operations and trustee services run under the Guardian Trust banner. In Australia it has the well-known AAMI general insurance and Tyndall funds management businesses.
The managing director of the floated business will be Royal & SunAlliance Australia boss, Mike Wilkins. RSA's Asia-Pacific director, Ewoud Kulk, will become non-executive chairman.
It is unknown how much of the business RSA will keep or where the company will have its primary sharemarket listing.
Macquarie Bank and Goldman Sachs are advising on the float, scheduled for the first half of 2003 and potentially raising more than A$2 billion depending on the inclusion of other Asian businesses.
RSA last night announced a nine-month operating result of £471 million, up from £307 million but still not acceptable, according to acting chief executive Bob Gunn.
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