Zurich Insurance says has understanding with RSA on valuation

ZURICH, Aug 25 (Reuters) - Zurich Insurance Group and RSA Insurance (LSE: RSA.L - news) have reached an understanding on how to value the British insurer that Zurich has proposed to buy for 550 pence per share, or 5.6 billion pounds ($8.83 billion), a Zurich spokesman said.

"This is our proposed price based on our assumptions and pending certain conditions," he said after news of the tentative all-cash offer emerged on Tuesday.

"There is common understanding by both companies on valuation and also on the readiness in principle of the RSA board to recommend that its shareholders accept a possible offer at this level," he added.

($1 = 0.6342 pounds) (Reporting by Paul Arnold, Editing by Michael Shields)