The 2013 full year preliminary results for RSA Insurance Group plc was announced 27 February 2014.


"3 FOR 8 RIGHTS ISSUE AT 56 PENCE PER NEW ORDINARY SHARE
Further to the announcement on 27 February of its preliminary results for the year ended 31 December 2013, RSA Insurance Group plc ("RSA" or the “Company”) today announces the launch of a rights issue to raise £773 million in proceeds (£748 million net of expenses) (the “Rights Issue”). The Rights Issue is a fully underwritten 3 for 8 rights issue of 1,380,976,863 ordinary shares of 27.5 pence each in the capital of the Company at a price of 56 pence per New Ordinary Share.
The Issue Price of 56 pence per New Ordinary Share represents a discount of approximately 40% to the closing price of 93.4 pence on 24 March 2014 (being the last business day prior to the release of this announcement) and a 32.7% discount to the theoretical ex-rights price based on the closing price on 24 March 2014."

(thanks to skinny for this article)


Bottom chart 'fast stochastic'

The 2013 full year preliminary results for RSA Insurance Group plc will be announced at 7am on 27 February 2014. There will be an analyst and investor presentation commencing at 08:15 on the day.

RSA Ins Grp Stephen Hester appointed RSA Group Chief Executive

Thanks for the chart skinny...a good picture to close the day on.

Better things for RSA now we hope under the care of Stephen Hester.

18,740,000 in the UT @99p - bodes well!

Mmmm nice.

Is the divi safe , that should underpin the price ?

Dil,
divi being safe is far from certain this year.

Cheers skinny I'll give it a miss for now although the chart looks encouraging.

Canaccord Genuity Hold 99.28 95.85 85.00 95.00 Upgrades

I have got this marked in at 110 in short term and 120 medium term, but like to see it wander thro' 105 first.

Wonder what Hestor will get up to.

Bank of America Merrill Lynch Neutral 98.98 98.85 - 105.00 Reiterates

RSA Insurance Group plc - Response to Press Speculation

Response to Press Speculation

RSA Insurance Group plc notes the recent press speculation regarding a potential Rights Issue.

RSA is considering measures to strengthen its balance sheet, including raising capital by way of a Rights Issue, however no final decision has been made by the Company at this time.

Further details will be given when appropriate.

RSA’s 2013 full year preliminary results and update on the current business review will be announced on 27 February 2014.

-ENDS-

Final Results

RSA ANNOUNCES 2013 PRELIMINARY RESULTS, NEW STRATEGIC ACTION PLAN AND PROPOSED RIGHTS ISSUE

Disappointing 2013 headline results with pre-tax loss of £244m but normalised2 pre-tax profit of £427m

Net written premiums up 3% on constant exchange rate basis to £8.7bn
Weather charge of 3.5% of premiums; significantly higher than five year average
Irish underwriting loss of £220m from management irregularities, reserve strengthening and Q4 adverse weather
Group underwriting profit of £57m (20121: £358m); normalised2 underwriting result of £309m
Investment income of £493m (2012: £515m)
Goodwill and software intangibles write downs of £331m
IGD surplus at 31/12/13 of £0.2bn, ECA surplus of £0.7bn; Adjusting for impact of proposed rights issue, IGD surplus at 27/02/14 expected to be c.£1.3bn with coverage of 1.8 times
Strategic action plan including £775m rights issue

UK & Ireland, Canada, Scandinavia and Latin America to form core of the Group going forward
Extensive business improvement plans in train focused on portfolio actions and expense efficiency
Certain disposal processes have already commenced targeting c.£300m proceeds in 2014
Capital actions to reduce equity and property exposure and execute new reinsurance structures complete
Independent review of reserves complete. Conclusion that reserves are in a reasonable range
Our own assessment of margin in reserves at 31/12/13 is 5.0%
Proposed rights issue to be launched with the aim of raising £775m
Impact of 2013 results means final dividend cannot be justified

Barclays Capital Equal weight 102.20 102.20 99.00 102.00 Retains

After results:

Feb 27: UBS reiterates: Buy - TP unchanged: 113p

Announcement re: Rights Issue

3 FOR 8 RIGHTS ISSUE AT 56 PENCE PER NEW ORDINARY SHARE

Further to the announcement on 27 February of its preliminary results for the year ended 31 December 2013, RSA Insurance Group plc ("RSA" or the “Company”) today announces the launch of a rights issue to raise £773 million in proceeds (£748 million net of expenses) (the “Rights Issue”). The Rights Issue is a fully underwritten 3 for 8 rights issue of 1,380,976,863 ordinary shares of 27.5 pence each in the capital of the Company at a price of 56 pence per New Ordinary Share.

The Issue Price of 56 pence per New Ordinary Share represents a discount of approximately 40% to the closing price of 93.4 pence on 24 March 2014 (being the last business day prior to the release of this announcement) and a 32.7% discount to the theoretical ex-rights price based on the closing price on 24 March 2014.

Following a comprehensive review of the options available to RSA, the Board believes that the Rights Issue will enable the Group to restore its capital position and keep ahead of anticipated industry capital trends, and that this will allow the business to carry out its action and improvement plans without undue risk of suboptimal decisions forced by capital shortage or instability.

The net proceeds of the Rights Issue will be held as cash or low-risk investments in order to improve the Group’s capital strength and surplus over its capital requirements.

RSA has arranged for the Rights Issue to be fully underwritten by BofA Merrill Lynch and J.P. Morgan Cazenove, to provide certainty as to the amount of capital to be raised.

The website has been updated - Rights Issue

Announcement re: Rights Issue

RSA Insurance Group plc (the “Company”) announces that, pursuant to the Rights Issue announced on 25 March 2014, 1,380,976,863 New Ordinary Shares of 27.5 pence each will be admitted to listing on the premium listing segment of the Official List of the UKLA and will be admitted, nil paid, to trading on the London Stock Exchange plc’s main market for listed securities at 8.00 a.m. today.

Nil paid ticker looks to be RSAN.

Citigroup Neutral 88.23 95.20 96.00 96.00 Reiterates

Nomura Neutral 88.23 95.20 96.00 89.00 Reiterates