Zurich drops £5.6bn RSA Group bid

General insurance losses weigh on firm

Zurich has withdrawn its £5.6bn bid for rival firm RSA group after suffering losses in its general insurance business.

Zurich first announced it was evaluating a potential offer for RSA on 28 July. It revived its attempt to acquire the rival business with a new proposed cash offer of 550p per share in August. But on 21 September it said: "Discussions with RSA have now been terminated. Zurich does not intend to make an offer to acquire the entire issued and to be issued ordinary share capital of RSA." Shares in RSA, which is run by former RBS boss Stephen Hester, had been trading firmly below the 550p mark at about 517p at the time of the August cash offer. But RSA told investors the termination ...