Zurich Insurance Group proposes 8.8 billion usd takeover of RSA Insurance Group

Zurich Insurance Group v/s RSA Insurance Group:

Swiss insurance company, Zurich Insurance Group Ltd, made a takeover proposal for British insurance company, RSA Insurance Group on Tuesday. The amount is $8.8 billion. This is the Europe's biggest insurance deal.

Zurich Insurance Group

Zurich Insurance Group Ltd is Switzerland's largest insurer.As of 2013, the group was the world's 75th largest public company according to Forbes' Global 2000s list and in 2011 it ranked 94th in Interbrand's top100 brands. Zurich employs around 60,000 people serving customers in more than 170 countries and territories around the globe.

RSA Insurance Group

Zurich said a month ago it was weighing a bid but left it to the last day under British takeover rules to unveil a cash offer of 550 pence per share, roughly in the middle of the price range expected by investors in Zurich and RSA.


RSA said it planned to recommend the proposal to its board and gave Zurich another four weeks to come up with a firm takeover offer, though the Swiss insurance company reserved the right to ultimately bid below 550 pence per share.

Zurich Insurance Group

This is the same deal as Aviva's takeover the Friends Life insurance.


Zurich, which has said it would not overpay and is seeking a return on any investment in RSA of at least 10 percent, said it had reached a “common understanding” with RSA on how the British general and commercial insurer values itself.

RSA, known for its “More Than” home and car insurance brand in Britain, is in the early stages of a turnaround under former RBS boss Stephen Hester.

Let's see, Zurich will take over or not.

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