FTSE boosted by potential RSA takeover
Zurich Insurance has said it is considering a bid for RSA Insurance, the owner of the More Than brand.
The Swiss firm said, ‘Zurich notes the recent market speculation in relation to RSA Insurance Group and confirms that the company is evaluating a potential offer.’
There is ‘no assurance that any offer will be made’, Zurich added.
RSA, which is run by former Royal Bank of Scotland boss Stephen Hester, has a market value of about £4.5bn.
Zurich is Europe’s third-largest insurer and has often been linked with a bid for RSA.
The move comes amid consolidation in the insurance sector ahead of new European rules about the reserves insurers must hold. The change has prompted some companies to merge in an attempt to diversify revenue streams.
Shares in insurance group RSA jumped 12% after Zurich Insurance said it was considering a bid for the firm.
RSA’s rise helped to lift the FTSE 100 index 51.43 points to 6,556.56.