R&SA forced to prop up life fund - papers 17th July

The collapse in share price has forced SunAlliance and London, on of two life insurance funds of R&SA, to make use of a £500m capital guarantee to maintain its solvency, reports this morning's Times newspaper. The guarantee was put in place in the wake of the sharp fall in stock prices after September 11 but at the time R&SA said the fund did not need the cash. However, it is understood that SunAlliance & London (SA&L) has begun drawing cash to ensure that it can meet the Financial Services Authority's (FSA) solvency requirements as a result of the sharp fall in share prices since...