Troubled insurer RSA launches £773 million rights issue

Troubled British insurer RSA has set out its plans for a fully underwritten rights issue , to raise £773 million to restore its capital position.

RSA, which reported a £244 million pretax loss for 2013 after it suffered an accounting scandal at its Irish business and large weather-related claims, said it would launch a 3 for 8 rights issue at 56 pence per share.

The price is a discount of around 40 per cent on the closing price of Monday.

Earlier this month, RSA I named Ken Norgrove as chief executive officer of its Irish unit as the company seeks to recover from a scandal in Ireland that led to a $1.3 billion rights issue.

Mr Norgrove replaces Philip Smith, who resigned in November, saying he was made a "fall guy" amid an investigation into accounting practices. He starts June 1st.

Reuters