After unsuccessfully searching the markets for takeover targets, RSA has abandoned plans to raise one billion dollars in a rights issue.
In its effort to increase its presence across Europe and in emerging markets, the insurance group will now focus on smaller bolt-on acquisitions funded by existing capital.
The news has been greeted with shock across the insurance industry as RSA is rated one of the strongest insurers in the UK, having its regulatory capital requirement covered by almost 2.5 times over with a surplus of 1.7 billion pounds on its balance sheet.
