Insurer RSA faces sale of family silver to protect credit rating

Troubled insurer RSA (RSA.L) may have to sell its best assets, leaving it concentrated in slow-growing markets such as its British home patch, to raise up to 1 billion pounds ($1.6 billion) and safeguard its credit ratings. RSA said on Friday that it needed to boost capital and may have to cut its dividend following three profit warnings and a move to strengthen reserves at its Irish business, where it suspects accounting irregularities. RSA Chairman Martin Scicluna is under pressure to outline a recovery plan to avoid downgrades to the company’s credit ratings, a move that could deter insurance brokers from recommending its products such as car and home insurance. Ratings agency Fitch on Monday put RSA’s Insurer Financial Strength (IFS) rating of ‘A’ on Rating Watch Negative, indicating it is considering a downgrade.

    

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