RSA is pulling out of writing motor insurance and instead will focus its More Than brand just on homes and pet business.
Owned by US private equity firm Intact Financial (TSX:IFC) since 2020, RSA said its £120mln motor book would be transferred to Swinton, part of Ardonagh Retail.
RSA will continue to offer new business and renewals until 31 August when Swinton takes over.
No figures were released for the consideration being paid, though RSA said the proceeds were “not expected to be material”.
In its statement, RSA added the personal lines motor market in the UK “requires significant scale to drive meaningful outperformance”.
Motor insurance had been a tough market in the past six months with the cost of claims soaring as inflation has pushed up repair bills.
Direct Line’s chief executive stepped down after it axed its dividend after a profit warning, while Admiral’s latest profits fell 39%.
RSA was split up at the end of 2020 after a joint £7.7bn bid from Intact and Danish firm Tryg.