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Aviva to sell RAC roadside rescue unit: source

Aviva to sell RAC roadside rescue unit: source
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First Published: Fri, Mar 25 2011. 07 43 PM IST
Updated: Fri, Mar 25 2011. 07 43 PM IST
London: British insurer Aviva has appointed JP Morgan to manage the sale of its RAC roadside rescue business, a person familiar with the matter said on Friday.
The proposed sale comes four months after Aviva, Britain’s second-biggest insurer by market value, announced plans to focus on the markets and businesses where it is strongest, prompting speculation that it could make disposals.
Aviva and JP Morgan both declined to comment.
Aviva shares were up 0.7% at 434.65 pence by 1210 GMT, outperforming the FTSE 100 share index, which was up 0.1%. The stock has risen 7% in the year to date, lagging an 8% rise in the Stoxx 600 European share index.
Aviva bought RAC in 2005 for £1.2 billion ($1.93 billion). Private equity companies are expected to be most interested in the business, which is valued at £500-600 million, the Financial Times reported earlier on Friday.
The 114-year old roadside recovery group is one of Britain’s largest, with over 7 million members.
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First Published: Fri, Mar 25 2011. 07 43 PM IST
More Topics: Aviva | RAC | Insurer | Insurance | Corporate News |