Company news from ShareCast
RSA to scrap dividend to foot balance-sheet loss
The company plans to raise at least £500m following an accounting scandal at its Irish business that forced the resignation of Chief Executive Simon Lee, according to The Sunday Times.
The insurer is said to be considering passing on its final dividend altogether and has signalled lower payouts in the future.
It follows news last week that RSA is set to appoint advisers at UBS bank to sells its businesses in central and eastern Europe, including Link4 in Poland and Balta in Latvia. However, analysts believe the disposals will fail to raise enough cash.
"A sale of the eastern European businesses is not going to get a high enough sum to keep ratings agencies happy," an investor told the British newspaper. "They need to do something quickly, which leaves the dividend vulnerable."
RSA's Executive Chairman Martin Scicluna has set a February target to produce a solution to the capital shortfall.
It is understood the firm is facing fines of about £35m from Irish regulators, on top of the £200m in additional capital the group has pumped into its operation in Ireland.
Shares fell 1.67% to 100p at 09:33 on Monday.
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