Royal Sun Alliance rumoured to be considering Dividend cut
January 27, 2014 12:20 pm
Insurer Royal Sun alliance Plc (RSA.L) needs to raise capital following the recent scandal in Ireland and fill a hole in its balance sheet to cover the extra capital pumped into its Irish business.
The company needs to raise an estimated £500M and part of this will be covered by the proposed sale of its businesses in Europe however according to analysts this will not be enough to cover the whole amount – the company is rumoured to be considering plugging the short fall by cutting this years full year dividend altogether and lowering future payouts.
Insurer Royal Sun alliance Plc (RSA.L) needs to raise capital following the recent scandal in Ireland and fill a hole in its balance sheet to cover the extra capital pumped into its Irish business.
The company needs to raise an estimated £500M and part of this will be covered by the proposed sale of its businesses in Europe however according to analysts this will not be enough to cover the whole amount – the company is rumoured to be considering plugging the short fall by cutting this years full year dividend altogether and lowering future payouts.