Zurich abandons possible £5.6bn offer for RSA

Zurich earlier said it had abandoned its proposed bid, first mooted in July, after forecasting a loss in its general insurance business in the third quarter.

RSA said Zurich had confirmed that its due diligence findings were in line with the Swiss insurer’s expectations and they had not found anything that would have prevented them from proceeding with a transaction on the terms announced on August 25.

RSA said: “The board and management of RSA look forward to the future with confidence in its prospects.”

Investor Cevian Capital, RSA’s top shareholder, was not immediately available for comment.

RSA is headed by Stephen Hester, who is from Yorkshire.