Royal & SunAlliance acquires EGI Holdings

Royal & SunAlliance Insurance Group plc has acquired Ireland’s EGI Holdings Ltd. for 25.2 million (US$32.4 million), payable in cash.

“EGI is a well established business with strong positions in a number of specialty lines,” a Royal & SunAlliance press release said . “In 2005, it delivered a profit before tax of 7 million (US$8.98 million) on net written premiums of 22.5 million (US$28.9 million).”

Royal & SunAlliance says the transaction is part of its strategy to establish leading positions in targeted segments and broadens its product offering.

Simon Lee, chief executive of Royal & SunAlliance International Businesses, said the insurer has a strong business presence in Ireland, where it has seen significant profit.

“The combination of Royal & SunAlliance’s technical excellence and distribution network and EGI’s product expertise creates a platform on which to drive profitable growth,” Lee said.

The transaction is subject to regulatory approvals.