FTSE 100 insurer on turnaround track

RSA to prop up pension as outlook improves

Hester smile vidInsurance giant RSA is poised to inject millions into its pension scheme and report improving profits in a clear sign that is on track to achieve its turnaround goals.

It is expected to announce this week that it has reached a settlement with trustees at a number of pension schemes for staff at various businesses it has acquired over the years.

The FTSE 100 firm’s pension liabilities rose to more than £7 billion last year – twice the company’s market value – and this was seen as a reason why Zurich pulled out of a planned takeover last year.

Chief executive Stephen Hester (pictured), who led Royal Bank of Scotland in the aftermath of Fred Goodwin’s departure, will unveil the improved outlook for the insurer on Thursday.

It is expected to report a fall in new business in line with asset sales but a rise in operating profits and dividend.

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