The decision was said to be a result of “recent deterioration” in the trading performance of Zurich’s general insurance business, and not the consequence of anything unexpected in the due diligence process.
RSA said Zurich’s interest in buying the business was unsolicited, and said it has continued to make good progress in delivering on its action plans.
“Trading results for July and August have been positive and ahead of our expectations,” it said in a statement published on Monday. “The board and management of RSA look forward to the future with confidence in its prospects.”
Share price fall
Since news emerged that the Swiss insurer was chucking its takeover plans earlier today, the share price of RSA plummeted by around 22%.
Zurich’s interest in purchasing the UK-based insurer came to light in July.
Earlier this month, RSA announced it would be selling its Latin American business for £403m as it continues to focus on its core market.