But insurer insists no decision has been made yet

RSA has confirmed it is considering a rights issue to bolster its capital base.

However, the company added in a stock exchange announcement this morning that no final decision had been made on how it will raise capital.

The announcement follows press reports over the weekend suggesting the insurer was plotting an £800m rights issue.

These followed rumours last weekend that RSA was planning a £350m share issue.

RSA said in the announcement: “RSA Insurance Group notes the recent press speculation regarding a potential rights issue.

“RSA is considering measures to strengthen its balance sheet, including raising capital by way of a rights issue, however no final decision has been made by the company at this time.

“Further details will be given when appropriate.”

RSA is planning to shore up its finances after discovering accounting and reserving problems at its Irish operations in November. The problems will cost the company £200m to fix.

The company is expected to announce its capital raising plans when it releases its 2013 results on Thursday.