Aviva has announced that it has agreed to sell UK motorist organisation the RAC (also the UK’s second largest roadside assistance provider) to investment company The Carlyle Group for GBP1bn.
Completion, which is subject to regulatory and competition approvals, is expected at the end of the third quarter of 2011.
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Carlyle will retain the existing management team, led by RAC’s managing director Angela Seymour-Jackson.
Andrew Moss, group chief executive of Aviva, said: “The sale of RAC is another important step for Aviva and realises significant value for our shareholders. Together with the recent partial disposal of Delta Lloyd, it demonstrates clear delivery of our strategy and provides the flexibility to deepen our presence in the priority markets where we have strength and scale.”
Aviva will continue its commercial relationship with RAC both as an underwriter of motor insurance on RAC’s panel and as a partner, selling RAC breakdown cover to Aviva’s customers.
Aviva said that as the RAC develops its business and extends its product offering ‘both parties will seek to find new areas where they can work closely together’.
