Royal & SunAlliance has denied reports that it is to partially float its investment arm to boost its share price.

The company moved its investment division out of the Leadenhall HQ to offices in Broadgate West, sparking the City rumours.

The division hopes to increase the amount of external fund management it carries out. A company spokesman said: “Expected investment income is a large part of the process when setting rates. Without it you'd need much more stringent underwriting criteria.”