Major shareholders in insurer RSA (RSA.L) would back the company’s chief executive plans to raise $1 billion (614.6 million pounds) in a rights issue, The Daily Telegraph reported on Wednesday, citing some of the insurer’s largest institutional investors.
The UK newspaper said the unnamed shareholders would back CEO Andy Haste as a “reward for reversing the company’s fortunes during his six years at the helm.”
The former banker streamlined the business by selling its troubled American unit, cutting thousands of jobs and overseeing a 960 million pounds cash-call in September 2003.
RSA Insurance Group declined to comment on the report.
It saw its shares drop over 5 percent on Tuesday following the rights issue reports. Analysts said they saw no need for a cash call. Last month, RSA increased its interim dividend and the insurer has also bought back debt.
The company is expected to use any money raised to fund small bolt-on acquisitions and increase the volume of business it currently writes.
