Buyout of Insurance Group Advances

DOVER, Del. — Delaware’s insurance commissioner gave conditional approval Tuesday to the proposed management buyout and eventual dissolution of the Royal and SunAlliance Insurance Group’s operations in the United States.

The decision by the commissioner, Matthew Denn, follows the recommendation included in a hearing officer’s report this month. Mr. Denn said he would stay his decision for five business days to allow opponents time to file a court appeal.

To ensure that American policyholders are protected, Mr. Denn said his approval of the buyout was conditioned on Royal and SunAlliance’s agreeing to submit to the jurisdiction of Delaware courts to resolve any claims brought by policyholders.

Kedar Bryan, a spokesman for the insurer’s American operation which is based in Charlotte, N.C., declined to comment on the developments.

Royal and SunAlliance said in 2003 that it did not consider its struggling United States business central to its main operations, and it stopped writing new policies with the eventual goal of exiting the American market it had served more than 150 years.


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