Shares in Royal & Sun Alliance Insurance Group are up 3% this morning after the successful float of its Australasian business, Promina.
Royal & Sun Alliance revealed earlier that the sale of its Promina unit is expected to generate £540m - a third of the money needed to plug its capital shortfall.
According to reports, market analysts have claimed R&SA now has up to £750m to underwrite new insurance business.
Chris Rathbone, an analyst at stock broker Williams de Broe, said: "The immediate effect of the IPO is that the rating agencies will realise there isn't an execution risk to RSA's strategy and they will either re-affirm or raise their ratings."
