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'

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

Goldman Sachs Neutral 89.43 89.55 84.33 92.00 Retains

Results of Rights Issue

RSA Insurance Group plc (the “Company” or “RSA”) today announces that the 3 for 8 Rights Issue of 1,380,976,863 New Ordinary Shares at 56 pence per New Ordinary Share announced on 25 March 2014 closed for acceptances at 11:00 a.m. (London time) on 9 April 2014. The Company received valid acceptances in respect of 1,321,235,690 New Ordinary Shares, representing approximately 95.67 per cent. of the total number of New Ordinary Shares to be issued pursuant to the fully underwritten Rights Issue.

Share Consolidation

RSA Insurance Group Plc has announced the terms of a Consolidation. Shareholders as at close of business on 9th May 2014 will receive 1 new Share in place of every 5 Shares held, subject to Shareholder approval at the Annual General Meeting to be held on 9th May 2014. New Shares following the Consolidation are expected to be credited to portfolios on 12th May 2014.

RSA announces £300m sale of operations in the Baltics and Poland

RSA Insurance Group plc announces that today it reached agreement, subject to regulatory approvals, to sell each of Lietuvos Draudimas AB (Lithuania), AAS Balta (Latvia), the business of the Estonian branch of Codan Forsikring A/S (together RSA’s operations in the Baltics), and Link4 Towarzystwo Ubezpieczen Spolka Akcyjna (Poland) to Powszechny Zakład Ubezpieczeń sa (PZU).

Assuming each of the four transactions completes (and subject to the adjustments described below), RSA will receive total aggregate consideration of approximately €360m (£300m) payable in cash. The transactions are expected to add around £200m to the Group’s tangible net assets, improving the Group’s capital strength.

Subject to obtaining relevant regulatory approvals in the respective countries, each transaction is expected to complete during the second half of 2014.

1st Quarter results

Underlying trading in line with our expectations; underlying premiums down 4%1

Tangible equity of £2.5bn including rights issue proceeds

Good progress on our action plan: rights issue completed; disposal of Baltics and Polish operations announced; other portfolio actions underway

Trading update

Underlying net written premiums down 4%1 (down 9%1 at headline level) as we see the effects of our portfolio action plan and a more disciplined underwriting approach across all regions.
Underlying profit trends broadly in line with our expectations. Good results in Scandinavia; Weather impacts in the UK, Ireland and Canada, as previously reported.
Capital metrics at 31 March 2014 (adjusted for impact of rights issue proceeds): IGD surplus c.£1.2bn with coverage of 1.8 times; ECA surplus c.£1.3bn with coverage of 1.5 times.
Tangible equity £2.5bn, including rights issue proceeds (31 December 2013: £1.7bn).
Strategic update

Good progress in executing our action plan as we look to tighten the strategic focus of the Group, build capital strength, and put in place building blocks to improve business performance.
Rights issue completed.
Announced disposal of operations in the Baltics and Poland.
Making good advances with portfolio actions.

Consolidation
12th May 2014
1 new share in exchange for every 5 shares held

To sell or not to sell!