Struggling RSA Insurance taps investors for £773m rights issue

 
Oliver Smith
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INSURER RSA Group announced yesterday that 95.67 per cent of its share issue has been snapped up by investors, raising £773m for the group.

The remaining stock will be offered for sale by JP Morgan and Merrill Lynch, but if it is not sold, under their role as underwriters, they will buy the balance themselves.

“We have the tools needed to ensure that RSA fulfils its potential and delivers value for our customers and shareholders,” said RSA’s chief executive Stephen Hester.

The issue, which was announced last month, came following the RSA’s announcement of a 2013 loss of £244m in February.

“Our focus is on implementing the strategic and operational changes outlined in February; the targets we have set and managing RSA with clarity, determination and effectiveness,” added Hester.

Despite RSA shares slipping early yesterday morning, they closed up 0.5 per cent at 94.95p per share.