RSA faces right royal costs

EMBATTLED insurer Royal & SunAlliance will have to pay £48m in costs for its bumper £960m rights issue as it reels from multi-million pound payouts to a horde of departing directors.

The three banks backing the cash call - Goldman Sachs, Merrill Lynch and Cazenove - share £35m. The rest is VAT costs.

The accident-prone insurer has already shelled out £3.94m to departed directors Paul Spencer, Julian Hance, Anthony Forbes and ousted chief executive Bob Mendelsohn - who got a controversial £2.45m pay-off.

Interim chief executive Bob Gunn, who leaves this month following the arrival of Andy Haste, took home £995,000 in salary and bonuses for 2002. Top ups mean his pension pot is worth £5.5m. Mendelsohn has a £3.9m pension pot.

RSA shares slid 8 3/4p to 113 1/4p on worries the 70p-a-share rights issue will flop. Before announcing the cash call, RSA was 154p.

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in