Insurer RSA says mulling rights issue

London - British insurance firm RSA is mulling plans to raise fresh capital via a rights issue or share sale, it announced on Monday.

The confirmation follows media reports it was set to launch a fundraising effort this week under new chief executive Stephen Hester, who was formerly boss of Royal Bank of Scotland.

"RSA Insurance Group plc notes the recent press speculation regarding a potential rights issue," it said in a brief statement issued ahead of annual results due on Thursday.

"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."

RSA had announced on February 4 that ex-RBS boss Hester was appointed chief executive with immediate effect.

Hester left RBS last year, reportedly at the request of Britain's coalition government led by Prime Minister David Cameron.

Royal Bank of Scotland, which is 81% state-owned after a vast bailout at the top of the global financial crisis, will also publish its annual earnings on Thursday.

Newspaper reports suggest that the lender will slash its headcount by tens of thousands of employees.