With Angelique Ruzicka, finance editor
It was a bad week for LSE-listed insurers on our watchlist, with many experiencing drops in their share price. There were some exceptions including Amlin, whose shares jumped 5.8% to 390.6p per share, and Novae, whose shares jumped 4.48% to 352.1p. Hardy and Hiscox saw their shares rise 3.39% and 2.60% respectively.
RSA’s share price dipped further by 2.91% this week to 126.8p after news that it may call on investors to help it raise around £600m for an acquisition, despite having a healthy balance sheet. Analyst Joy Ferneyhough from Execution said that, with such a small amount, RSA would only be able to buy bolt-on businesses.
Reports this week indicate that RSA group chief executive Andy Haste could be eyeing AIG’s Latin American business and Fortis Insurance International.
J.P. Morgan and Merrill Lynch are believed to be advising RSA on potential targets. RSA refused to comment.
But RSA did not experience the biggest drop in share price this week. That was Brit, which fell 4.46% to 207.7p, while Friends Provident followed with a 3.86% drop to 82.20p.