Insurer RSA Offers £5 Billion to Purchase Chunk of Rival Aviva

Insurer RSA made an offer to rival Aviva (AV) to purchase its general insurance operations in countries including the United Kingdom and Canada for £5 billion ($7.8 billion).

The Aviva board rejected the offer, saying that it believes the model of offering both general and life insurance products is the best for its business, Sky News reported without naming its sources. Aviva did not consult its leading shareholders.

It is not clear if RSA will raise its bid.

RSA has been in the hunt for acquisitions, and last year considered a bid for Santander's South American insurance operations, Sky News said.