View more on these topics

R&SA set to shelve life sale as it eyes general insurance

Royal & Sun Alliance is exp-ected to shelve plans to sell its life business this week when it announces its nine months&#39 figures on Thursday.

The insurance giant is looking to raise capital to support growth in the booming general insurance market.

The company will ann-ounce a number of options to raise the cash, which may include dividend cuts, running the risk of potentially lowering its credit rating.

R&SA was aiming for a £2bn sale of its life and fund management arms earlier this year but has so far failed to find a buyer.

It is understood that the company will defer its plans for the life business in light of the current market conditions.

Analysts say R&SA would not have to find ways of raising capital for its general business if it had managed to sell its life book. The analysts also warn that R&SA will still need cash just to continue funding the life business.

Cazalet Financial Consulting principal Ned Cazalet says: “The embedded value of the life business has now fallen by millions. Far from being a source of capital, the life business actually needs capital injected just to keep it afloat.”

R&SA spokesman Steve Clark says: “We will be updating the market on how we intend to fund growth in general insurance, where we have identified an upturn.”

Recommended

Public prefer IFA advice to internet and the press

Consumers would prefer to seek advice from an IFA rather than search for products on the internet or in the press although banks remain the most favoured route, says a survey by Sun Bank.When looking at where to put their savings, independent financial advice was the second most popular way of finding a suitable product. […]

Fidelity in call to zap the cap

Fidelity is voicing is disapproval of price or commission capping by enc-ouraging IFAs to speak out against any efforts to introduce anti-competitive controls by the Government or regulator.The fund manager is encouraging IFAs to sport its “Zap the Cap” baseball hat which it distributed to advisers who attended its recent annual roadshows.It says it wants […]

Misselling fears on protected and guaranteed funds

Investors are unaware of the complexity of structured products such as protected or guaranteed investments and how their returns are calculated, warns IFA firm Deep Blue Financial.The company says it has carried out comprehensive analysis of the structured investment market and has identified what it calls “smoke and mirrors” products which are deliberately complex and […]

Octopus Asset Management – Bioscience VCT

Thursday, November 8, 2001.Aim: Growth by investing in listed and unlisted biosciencecompanies.Minimum investment: Lump sum £3,000.Opening-closing date: October 15, 2001-April 5, 2002 for 2001/2002tax year, April 12, 2002 for 2002/2003 tax year.Charges: Initial 5 per cent, annual 1.25 per cent.Commission: Initial 2.25 per cent, renewal 0.25-0.4 per cent for firstfour years.Tel: 0800 2792501.

Planning now for the residence nil-rate band

Graeme Robb, senior technical manager at Prudential, writes about the residence nil-rate band and the advice opportunities it presents for you when tax year-end planning with your clients. On our Planning Matters hub, we considered a widow, Margaret, and a married couple, John and Anne, for whom the residence nil-rate band (RNRB) is influencing planning […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com