RSA Purchase Gets FIS in Top 10

April 30, 2002 ( - UK-based Friends Ivory & Sime (FIS) bought the asset management arm of embattled insurer Royal & Sun Alliance (RSA) in a deal that will give FIS a solid footing in the UK's retail market, according to a report in the Financial Times.

The £240 million takeover deal, which FIS is funding through cash resources and a £190 million loan from Friends Provident, which has a 67% stake in FIS, will see FIS more than double its assets under management to £70 billion, making it one of the top ten active asset managers in Britain.

The deal, which analysts say will give FIS greater scale, extra distribution, and additional clout when it comes to negotiation, makes FIS the investment manager of RSA’s domestic life insurance and general insurance funds.

Of the £70 billion of funds under management, some 83% will be insurance funds, with 12% institutional funds and investment trusts representing some 2%, according to the newspaper report.