Just over three years after departing the Australian and New Zealand markets, British insurer Royal and Sun Alliance (RSA) has signed a deal that will see it escape from the difficulties of North America. It will sell its US operations to a local management group.

CEO Andy Haste says the transaction will “provide finality” to the North American exit strategy that was first flagged in 2003.

“Today’s announcement is a significant step for the group,” he said. “The sale of the US operation is the right deal for our shareholders and US policyholders.”

The management team, operating through their Arrowpoint Capital investment vehicle, will pay £158 million ($397 million) for the business – although this will be funded from future earnings.

The UK company will also inject £151 million ($379 million) to cover current and future legacy costs. That, and other related transaction costs, will result in a one-off writedown of £443 million ($1.11 billion) for RSA.

RSA has spent the past few years rationalising its business and ensuring all units deliver for shareholders. Businesses that could not offer sustainable returns or involved “unacceptable” risk portfolios were abandoned.