Royal & SunAlliance, the once-mighty insurer now struggling to retain its status as a significant international player, is going ahead with a $2.3 billion rights issue after shareholders in London agreed to the move.

Initially investor reaction to the proposal was negative and angry, but figures show that around 95% of investors voted in favour of the move.

Credit for the turnaround has been given to new CEO Andy Haste, who conducted a number of roadshows in Britain and the US to allay fears of more losses. Under the rights issue, R&SA will offer investors one share for every share they own.