Royal & SunAlliance's planned rights issue aimed at strengthening the reserves of its US business is a prelude to the company's exit from the US market, reports the Financial Times.
It is believed that regulators in the US will require the additional funds before the business can be sold, whether in its entirety or in parts.
The US is one of R&SA's biggest markets and the company has already sold its US-based RSUI "surplus lines" business as part of its restructing program.
Last year the insurers US division generated £1.9bn of premiums.
Details of the rights issue are to be announced tomorrow.
