Canadian and Latin American businesses could also be put up for sale

RSA may be forced to put itself up for sale as investors react to the insurer’s latest profit warning and departure of chief executive Simon Lee, The Sunday Times reports.

Large investors have written to RSA demanding it looks for potential takeover deals. Allianz, Axa, Aviva and Zurich are all rumoured to be interested in a deal.

Other investors have written to request the sale of the insurer’s Canadian or Latin American operations to help turn around the firm’s faltering fortunes.

Accounting firm PwC is currently investigating problems at RSA’s Irish business, which has forced the insurer to pump £205m into the division over recent months resulting in the resignation of Lee last week following a third profit warning.

Three directors at the Irish business have also been suspended after suspicions arose about accounting irregularities within the business.

These events have resulted in shares in RSA plummeting by 26% to 92.5p when the market closed last week, down from 125p 12 months ago.